Mortgage calculator: figure out what you can afford
- Figure out how much you can afford to spend on a home.
- Determine what your mortgage payments will be.
- Compare different ways of paying your mortgage off faster.
- Add lump sum or top-up payments to your mortgage calculation.
- See your amortization schedule (which provides a breakdown of principal and interest payments for the life of the mortgage)
What is a pre-approved mortgage?
It’s a written commitment from a lender that you will get a mortgage for a set amount at a set interest rate, locked in for 60-120 days, depending on the lender. The commitment is subject to a financial assessment and property appraisal. This service is always free and without obligation.
Why do it?
A pre-approved mortgage gives you an edge. Before you even start house hunting, you’ll know how much you can afford, your interest rate, and your monthly payments. With your financing already mapped out, you can concentrate on finding the right home in your price range.
From offer to closing
When you find the home that’s right for you, your next step is to make an offer to purchase the home from the current owner. The owner can accept your offer, make changes to the offer and present you with a counter-offer, or reject the offer.
About the Offer to Purchase
The Offer to Purchase is a legally binding agreement between you and the person selling the house. It includes:
- Your name
- The seller’s name
- The address and legal description of the property
- The price you are prepared to pay for the home
- The items you expect to be included/excluded in the purchase price
- The amount of your cash deposit
- The closing date
- Specific terms or conditions that must be met as part of the purchase
- A time limit for meeting these conditions
You may want to discuss the Offer to Purchase with your lawyer before you sign it. Remember, it becomes a legally binding agreement the moment it is accepted. If you decide to cancel an offer that has already been accepted, you could lose your deposit and the person selling the home could sue you for damages. If the seller does not accept your offer, your deposit will be returned.