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Private Mortgage Calculator Canada: Estimate Your Costs and Payments
For Canadians seeking alternative financing options, private mortgages can be a lifeline. Whether you need fast funding or have unique financial circumstances, calculating your private mortgage costs accurately is essential. Use our Private Mortgage Calculator to estimate your monthly payments, total interest, and loan costs based on real-time private mortgage rates in Canada.
What Is a Private Mortgage Calculator?
A Private Mortgage Calculator is designed specifically for estimating payment schedules and interest costs for private loans. Unlike traditional mortgage calculators, this tool is tailored to reflect the distinctive terms, higher interest rates, and flexible options associated with private mortgages in Canada.
Key Inputs Include:
- Loan Amount: How much you need to borrow.
- Interest Rate: Private mortgages generally have higher rates, often between 6% and 15%.
- Loan Term: Usually shorter, ranging from 6 months to 3 years.
- Payment Type: Options for interest-only or principal + interest payments.
How to Use This Private Mortgage Calculator
- Enter Loan Amount: Input the principal amount you intend to borrow.
- Set the Interest Rate: Private mortgage rates typically range from 6% to 15%, reflecting the higher risk profile.
- Select Term Length: Choose the loan term, typically between 6 months and 3 years.
- Choose Payment Frequency: Options include monthly, bi-weekly, or weekly payments to see the impact on your loan.
For more insights, check the Financial Consumer Agency of Canada (FCAC) on managing mortgage costs effectively.
Example Calculation
Consider a borrower taking a second mortgage with these details:
- Loan Amount: $150,000
- Interest Rate: 10% annually
- Term: 1 year (12 months)
- Payment Type: Interest-only
Results:
- Monthly Payment: $1,250 (interest-only)
- Total Interest Paid: $15,000
- Total Loan Cost: $165,000
At the end of the 1-year term, the borrower will have paid $15,000 in interest and will still owe the original $150,000.
Using a mortgage broker from Citadel Mortgages can help you ensure you have some of the best mortgage rates and products.
Benefits of Using a Private Mortgage Calculator
- Accurate Planning: Calculate precise monthly payments for budgeting.
- Scenario Comparison: Experiment with different loan terms, rates, and amounts to find the best fit.
- Transparency: Understand the total cost of the loan, including interest and principal repayment.
Explore the Canada Mortgage and Housing Corporation (CMHC) for more tools and resources to manage your mortgage journey.
Key Factors That Affect Private Mortgage Payments
Loan-to-Value (LTV) Ratio:
Higher LTV ratios, such as 85%, may increase your interest rate. For more on LTV, see the CMHC Loan-to-Value Guide.Property Location:
Homes in urban areas may secure more favorable rates compared to rural properties. View housing trends in your region on Statistics Canada’s Housing Data.Credit Profile:
Private lenders often work with individuals with lower credit scores, though stronger credit may help reduce your rate. For tips on building credit, check Equifax Canada.Payment Type:
Interest-only payments lower monthly costs but require the full principal at the end of the loan term.
Mortgage Broker Rates in Canada
Comparing Private Mortgage Lenders
When considering private mortgage options, it’s crucial to compare offerings from various lenders. Below is a comparison of sample private mortgage rates and terms:
| Lender/Broker | 1st Mortgage Rate | 2nd Mortgage Rate | Maximum LTV | Lender Fees From |
|---|---|---|---|---|
| Butler Mortgage | 5.99% | 7.99% | 80% | 1% |
| Home Trust | 6.14% | 8.14% | 80% | 1% |
| Haventree Bank | 6.19% | 8.19% | 80% | 1% |
| RiverRock Investments Corp | 6.99% | 8.99% | 80% | 2% |
| Canadian Mortgages Inc | 7.99% | 9.99% | 85% | 2% |
| Westboro Investment | 8.79% | 10.79% | 80% | 3% |
| Private Lender Inc | 8.99% | 10.99% | 80% | 2% |
| Prudent Financial | 8.99% | 10.99% | 65% | Varies |
| Alpine Credits | 9.00% | 11.00% | 75% | Varies |
| VWR Capital | 9.95% | 11.95% | 75% | 1% (Open) or $750 (Closed) |
| Calvert Home Mortgage | 9.99% (6-month) | 11.99% | Inquire | Inquire |
| Sun Mortgage | 10.00% | 12.00% | 75% | 1.5% |
| Threshold Mortgage Corp | 12.00% | 14.00% | 75% | 3% |
| Guardian Financing | 13.00% | 15.00% | 75% | 2% |
Note: Rates are for informational purposes and may vary based on individual circumstances and lender policies.
Frequently Asked Questions About Private Mortgage Calculators
Our calculator provides accurate estimates based on the values you input, but for exact figures, consult with a private mortgage specialist.
This calculator is tailored for private mortgages, helping you estimate monthly payments and total loan costs for alternative financing.
In addition to higher interest rates, private mortgages include several fees:
- Lender fees: 1% to 3% of the loan amount. Second Mortgage rates and fees are higher.
- Broker fees: 1% to 3%, depending on the complexity of the loan. Second Mortgage rates and fees are higher.
- Legal fees: $1,500 to $3,000.
- Appraisal fees: $300 to $500.
Yes, this tool supports all private mortgage types, including second and third mortgages, with customized rate options.
Private mortgages have a faster approval process compared to traditional loans. In most cases, you can receive approval and funding within 48 to 72 hours after submitting the necessary documentation.
Why Choose This Private Mortgage Calculator?
- Specifically for Canadian Borrowers: Built for Canadians and reflects private mortgage rates in Canada.
- Quick and User-Friendly: Easy-to-use calculator that delivers accurate estimates fast.
- Real-Time Rates: Our tool uses the latest private mortgage rates to help you plan.
Please use our 1st and 2nd private mortgage calculator to see how much you qualify for today!
Final Thoughts
Calculating your private mortgage costs is essential for managing your finances effectively. Our Private Mortgage Calculator helps you make informed decisions, providing clear payment estimates and insights based on Canadian private mortgage rates and terms.