Ever Wondered Home Much Principal You’ve Paid Down On Your Toronto Mortgage?

People sometimes get ‘mortgage term’ confused with ‘mortgage amortization’.  The term is the length of time that your interest rate is fixed or guaranteed for… typically 6 months to 5 years although we do have 7- and 10-year terms available as well in our Toronto real estate marketplace.

Amortization is the number of years that it would take to pay your mortgage off to a $zero balance, if the interest rate were constant all the way through.  In Toronto we’ve usually been working with a 25-year amortization but now in the past year our mortgage lenders are providing loans with 30- or even 35-year amortizations.  These lower your monthly payments but they also increase the amount of interest you’ll pay over the lifetime of that mortgage.

The Thomas & Sally Cook Team at RE/MAX provides, free of charge, a customized amortization chart to our clientele which allows us to show you, using the various possible amortizations and the available payment methods (weekly, accelerated bi-weekly, etc), what your overall cost of borrowing will be over the lifetime of the types of mortgages that you might be considering.

In addition, we’ve designed a unique Mortgage Terminator Program which shows how any home owner can pay his or her mortgage off in just 10 years, without having to make any lump sum payments whatsoever.

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