Mortgage calculators are useful during the home buying process, but they do have their limitations. I wanted to write this article to explain the use of mortgage calculators and why it’s crucial to still talk to a broker instead of solely relying on what the calculator says.
I have three different types of calculators on my website. I have an affordability calculator, a payment calculator and an amortization calculator. Each one has a different reason and provides a different value to you, the home buyer. But, with everything online, each one of these has a limit.
My calculator tools help you understand your budget and home eligibility by giving you estimated monthly payments, different loan rates as well as loan terms. But, the key word is estimated.
All mortgage calculators found online (whether it’s a bank’s website or a broker) gives you a general estimate based on the information that you input. The output will be a very generalized number without knowing your true situation. While it’s a good place to start, it’s not one that you should put your trust into fully.
Here’s the thing… your situation is completely unique and that’s something a mortgage calculator will never be able to know. The general information that you put into a calculator will not include certain variables like special mortgage programs, CPP, OAS, Canada Child Benefit (CCB), rental income from a suite, etc. All of these factors (and more) are incredibly important when qualifying you for a mortgage.
If you’re starting your journey and are just testing the waters to see what you may qualify for, using a calculator is a great first step. I know that it can feel intimidating speaking to a professional about money, especially in the beginning. But, I promise that I’ve helped hundreds of people in your same situation.
Once you get an understanding of mortgages and what the calculator can provide you, I highly encourage you to speak with a mortgage broker like myself. This is when we can go through your unique situation. We’ll discuss your debt vs income ratio, any mortgage programs you may qualify for, if you receive CPP, OAS or CCB. All of these conversations will be important when helping you get the best rate and mortgage option.
I encourage you to play around with the different calculators on my website to see what is possible. But, please do not put much weight behind the numbers. When you’re feeling ready to get pre-approved, that is something a mortgage calculator can’t do for you!
Let me help you during your home buying process. I will explain all mortgage steps in great detail, go through everything that a calculator would show you but with more information and understanding. I’ll help you get pre-approved, so you know exactly what loan amount you qualify for, so you can start shopping for homes!
Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the process today.
Let’s get your application off the ground.
