Million Dollar Journey

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

Building Wealth through Saving and Investing

Welcome to Million Dollar Journey! If you're new here, you can learn about me, read our user guide, and even follow my net worth updates. A great place to start reading is with the popular articles located in the right side bar. If you would like to join thousands of others and keep up with the free daily updates, you can subscribe to the RSS feed via reader or E-mail.

On your way out, make sure to check out the exclusive Million Dollar Journey Freebies and Deals.

Monthly Mortgage Payment Multiplier

Here is a handy little table that I found in the book “Personal Finance for Canadians for Dummies” for calculating monthly mortgage payments using a simple multiplier.

Interest Rate 15-Year Amortization 25-Year Amortization
5.0% 7.88 5.82
5.5% 8.14 6.1
6.0% 8.4 6.4
6.5% 8.66 6.7
7.0% 8.93 7.00
7.5% 9.21 7.32
8.0% 9.48 7.63
8.5% 9.76 7.95
9.0% 10.05 8.27
9.5% 10.33 8.61
10.0% 10.62 8.94
10.5% 10.92 9.29
11.0% 11.21 9.62
11.5% 11.51 9.97
12.0% 11.81 10.32

How does the table work? You find the current going interest rate, then multiply your (mortgage balance/1000) by the multiplier indicated.

For example, at todays 5 year fixed rates of around 5%, a 25-year $200k mortgage would mean a monthly mortgage payment of approximately $200k/1000 x 5.82 = $1164/month. This is the mortgage payment only and does NOT include property/water tax, insurance and heat/light.

By looking at the chart, another useful rule of thumb is that for every 0.5% that your interest rate goes up or down, you’re going to increase/decrease your monthly payment by around $30/month.

Or, you can simply use an online calculator like the one at Dinky Town.









No Comments, Comment or Ping

Reply to “Monthly Mortgage Payment Multiplier”

Subscribe without commenting



Get the Latest

      

Money Tips Newsletter

Premium Sponsors



Recent Comments

  • Kapitalust: It’s interesting to look at you as a case study because I’m on a very similar path, just a...
  • Graham: Regarding Don G.’s comment above on early withdrawal from RRSPs or RRIFs. This would apply mainly to...
  • Sebastien Benoit: @Andrew Keep in mind that you’ve already paid tax on the money you put into that...
  • Andrew: Hmm, this is interesting. Because I can get about $48,000 tax-free dividend income in Ontario from a...
  • FrugalTrader: @Mark, if you are concerned about falling ill and the cost of long term care, have you looked at long...
  • My Own Advisor: @FT, I’m not sure the financial legacy will be that large. Sure, there will (hopefully) be some...
  • Don G: This is a bit off topic but I’d like to comment on Graham’s comment on the RRIF withdrawals and...
  • M Trottier: Its better if you have a professional who has a Digital OTA spectrum analyzer do a signal strength test...
  • FrugalTrader: @My Own Advisor, I wouldn’t discount CPP so easily, but I can see the hesitation about OAS. My...
  • Graham: We are already well into retirement, but used a similar approach. While working, I was not much interested in...
 css.php