15 Year Mortgage Calculator – Canada
Note: This calculator assumes a 15-year amortization period.
Here’s a comprehensive table summarizing key information about 15-year mortgages in Canada:
| Aspect | Details |
|---|---|
| Availability | Less common than 25-year mortgages, but offered by some lenders |
| Maximum Amortization | 15 years |
| Minimum Down Payment | 5% for homes up to $500,000; 10% for portion between $500,000 and $999,999; 20% for $1 million+ |
| Mortgage Insurance | Required if down payment is less than 20% |
| Interest Rates | Generally lower than longer-term mortgages |
| Payment Frequency Options | Monthly, bi-weekly, accelerated bi-weekly, weekly |
| Monthly Payment Amount | Higher compared to longer amortization periods |
| Total Interest Paid | Significantly lower compared to longer amortization periods |
| Principal Repayment | Faster equity building compared to longer amortizations |
| Prepayment Privileges | Typically 10-20% of original principal per year; varies by lender |
| Qualification Criteria | Must pass mortgage stress test; higher income often required |
| Debt Service Ratios | Typically GDS 32-35%, TDS 40-42% |
| Impact on Affordability | May reduce borrowing capacity due to higher payments |
| Risk Assessment | Often viewed favorably by lenders due to faster repayment |
| Refinancing Options | Available, subject to lender’s terms and conditions |
| Portability | Often available, but check with lender |
| Renewal Process | More frequent renewals compared to longer amortizations |
| Early Payout Penalties | Usually 3 months’ interest or Interest Rate Differential (IRD) |
| Interest Calculation | Typically compounded semi-annually, not in advance |
| Tax Deductibility | Generally not tax-deductible for primary residences |
| First-Time Home Buyer Programs | May be eligible for various government programs |
| Impact on Retirement Planning | Can free up cash flow for retirement savings sooner |
| Lender Options | Available from major banks, credit unions, and some alternative lenders |
| Convertibility | Some lenders may allow extension to longer amortization if needed |
| Property Types | Generally available for various property types |
| Income Verification | Standard income documentation required |
| Credit Score Requirements | Typically requires good to excellent credit |
| Stress Test | Applies; must qualify at higher of 5.25% or contract rate + 2% |
| Financial Flexibility | Less flexible due to higher payments, but builds equity faster |
| Suitability | Ideal for those with higher incomes or looking to be mortgage-free sooner |
| Long-term Financial Impact | Significant savings on interest over the life of the mortgage |
This table provides a comprehensive overview of 15-year mortgages in Canada. It’s important to note that while 15-year mortgages offer the advantage of building equity faster and saving on interest costs, they come with higher monthly payments.
Potential borrowers should carefully consider their financial situation and long-term goals when opting for a shorter amortization period. As always, it’s advisable to consult with a mortgage professional for personalized advice based on individual circumstances and current market conditions.