Compare Side by Side
Make smarter mortgage decisions with Dove Mortgages Compare Side by Side Calculator. This advanced tool lets you compare up to 4 different mortgage scenarios simultaneously, providing a clear view of your choices. Easily evaluate key factors such as monthly payments, down payments, debt service ratios (GDS/TDS), and Annual Percentage Rates (APR) at a glance. Start comparing now and find the best mortgage solution for your needs!
Compare side by side Calculator
How to Use the Compare Side-by-Side Calculator
Our Compare Side by Side Calculator is designed to be intuitive and powerful. Follow these steps to make the most of this tool:
1
Start with Scenario 1
Start by entering the purchase price of the home you’re considering. This is the foundation for your mortgage calculations. Simply enter the full price, and the calculator will begin estimating your costs.
2
Add Home Expenses
- Input annual property tax, monthly condo fees (if applicable), and estimated heating costs.
- These factors affect your debt service ratios for mortgage approvals.
3
Create Additional Scenarios
- Click “Add scenario” to compare up to four different options.
- For each new scenario, you can modify any of the variables mentioned above.
4
Compare Results:
- The calculator instantly updates, showing side-by-side comparisons of mortgage payments, total costs, and more.
- Toggle between tabs to view detailed breakdowns of principal and interest, debt service ratios, and cash required to close.
5
Refine Your Comparison:
- Use the “Apply To All” feature for factors like the amortization period to quickly update multiple scenarios.
- Experiment with different rates, down payments, or home prices to see how they affect your mortgage options.
6
Canadian borrowers
Remember, this calculator is a powerful tool for Canadian borrowers. You can decide on the option that best fits your financial goals as you compare multiple scenarios.
Understanding Your Results
You’ll receive a detailed breakdown of each option after inputting your scenarios into our Canadian mortgage comparison tool. Here’s how to interpret your results:
Comparison Output
For each scenario, you’ll see a summary of your inputs (home price, down payment, rate, term) and the resulting mortgage amount. This allows for a quick side-by-side comparison of your options.
Key Metrics Explained
Term Interest
This shows the total interest you’ll pay over the term of your mortgage. A lower number means less cost over the term.
Term Principal
This represents how much of your mortgage balance you’ll pay off during the term of the mortgage. A higher number indicates you are paying off your principal balance faster and accumulating more equity.
Total Term Payments
The sum of the principal and interest you will pay over the term of the loan. This is the total out-of-pocket cost over the entire mortgage term.
Balance at End of Term
This shows how much of your mortgage balance will remain after the initial term you have selected. As you compare the different scenarios, a lower balance means you’ll end up paying down your principle balance faster on that particular mortgage. You will also have accumulated more equity.
Interest Comparison Chart
This visual tool allows you to quickly examine the differences in interest payments across scenarios:
- Each bar represents a scenario, with the height indicating the total interest paid.
- Compare bar heights to see which option results in lower interest costs.
- A significantly shorter bar might indicate a scenario with a larger down payment or lower interest rate.
Additional Considerations
- Check the “Principal & Interest” tab to see a monthly breakdown of payments.
- The “Debt Service Ratios” tab shows GDS and TDS percentages, which are a key consideration for Canadian mortgage approvals.
- “Cash to Close” helps you understand the upfront costs associated with each scenario.
Need help using Dove Mortgage’s Compare Side-by-Side Calculator?
Advanced Comparison Features
Our Compare Side by Side Calculator goes beyond basic mortgage calculations, offering advanced features to help you make nuanced decisions about your mortgage options:
Insured vs. Insurable Mortgages
- Insured mortgages: Down payments of less than 20%. Our calculator factors in CMHC insurance premiums, typically 2.8% to 4% of the loan amount for down payments between 5% and 19.99%.
- Insurable mortgages: For down payments of 20% or more. The calculator shows how avoiding insurance premiums affects the overall costs and monthly payments.
- Comparison benefit: See how different down payment amounts impact your total mortgage costs, helping you decide if paying for insurance or increasing your down payment is more beneficial.
Prepayment Options
- Our calculator allows you to input potential prepayment amounts and frequencies.
- Compare scenarios with different repayment strategies: a) Lump sum payments: Typically permitted annually, up to 10-20% of your original mortgage amount. b) Payment increases: Many Canadian lenders allow you to increase your regular payments by 10-100%.
- See how prepayments affect your amortization period and total interest paid over the life of your mortgage.
Cash to Close Evaluation
- The calculator provides a detailed breakdown of all upfront costs: a) Down payment, b) Land transfer tax (varies by province and municipality), c) Legal fees, d) Title insurance, e) Home inspection costs
- Compare how different scenarios affect your required cash to close, helping you budget effectively for your home purchase or refinance.
Using these features allows you to conduct a more thorough analysis of your mortgage options. This puts you in control to make decisions that align with both your short-term budget constraints and long-term financial goals of purchasing a home or refinancing an existing loan.
Tips for Effective Mortgage Comparison
To get the most out of our Compare Side by Side Calculator and improve your position when qualifying for a mortgage, consider these best practices:
1
Start with Realistic Scenarios
- Use current market rates for fixed and variable mortgages in Canada.
- Input accurate home prices based on your target market (e.g., Vancouver, Toronto, or Calgary).
- Be honest about your down payment capabilities and other debts.
2
Compare Apples to Apples
- When comparing different lenders, use the same amortization period and payment frequency.
- For variable rates, make sure you’re using the same benchmark (e.g., prime rate) across scenarios.
3
Leverage Results As You Shop
- Use the detailed cost breakdowns to discuss better terms with lenders.
- Highlight lower GDS/TDS ratios to negotiate better rates.
- Compare offered rates with your calculator results to decide if you’re getting a competitive offer.
4
Consider Short-Term and Long-Term Impacts
- Evaluate monthly payments for immediate budget planning.
- Look at the total interest paid over the amortization period for long-term cost analysis.
- Consider how different scenarios affect your equity buildup over time.
5
Consider Short-Term and Long-Term Impacts
- Evaluate monthly payments for immediate budget planning.
- Look at the total interest paid over the amortization period for long-term cost analysis.
- Consider how different scenarios affect your equity buildup over time.
6
Factor in Life Changes
- Use multiple scenarios to plan for potential income changes or family growth.
- Compare how different prepayment options align with your future financial goals.
7
Don't Forget Additional Costs
- Use the cash-to-close feature to budget for all upfront costs, including land transfer tax and legal fees.
- Consider how property taxes and potential condo fees affect your overall housing costs.
8
Stress Test Your Options
- Run scenarios with higher interest rates to determine if you can afford potential increases, especially for variable-rate mortgages.
Follow these tips, and you’ll be better equipped to use the calculator’s results effectively, whether you’re a first-time homebuyer in Ontario or looking to refinance in British Columbia. Remember, while the calculator provides valuable insights, consulting with one of our Canadian mortgage professionals can help you interpret the results in the context of your unique financial situation.
Home Expenses and Debt Service Ratios
When considering a mortgage in Canada, you need to understand how home expenses factor into your overall mortgage affordability. Our Compare Side by Side Calculator takes these factors into account
1. Home Expenses
a) Property Tax: An annual fee based on your home’s value and location. In Canada, this can range from 0.5% to 2.5% of your property’s assessed value. b) Condo Fees: Monthly payments for maintenance and shared amenities in condominium buildings. These can vary widely, from $200 to over $1000 per month. c) Heating Costs: Estimated monthly expenses for heating your home. In Canada, this typically ranges from $100 to $250 per month, depending on home size and location.
2. Impact on Affordability
These expenses are factored into your overall housing costs and directly affect how much mortgage you can afford. Lenders consider these when assessing your application.
3. Debt Service Ratios
- Canadian lenders use two key ratios to determine mortgage affordability: a) Gross Debt Service (GDS) Ratio:
- Calculation: (Mortgage Payments + Property Taxes + Heating Costs + 50% of Condo Fees) / Gross Annual Income
- Ideal maximum: 32-35%
- Calculation: (GDS expenses + All Other Debt Payments) / Gross Annual Income
- Ideal maximum: 40%-44%
- A lower ratio indicates better affordability from a lender’s perspective.
- Exceeding these ratios may limit your mortgage options or require a larger down payment.
- Our calculator helps you see how different scenarios affect your GDS and TDS ratios, allowing you to adjust your home-buying strategy accordingly.
Ready to compare mortgage options side by side with professional live guidance?
Our team of pros is standing by to help. Contact us today!
FAQ Side by Side
How accurate is the Compare Side by Side Calculator?
Our calculator uses up-to-date formulas and data relevant to the Canadian mortgage market. While it provides highly accurate estimates, remember that final mortgage terms may vary based on individual lender policies and your specific financial situation. Always consult with a mortgage professional for personalized advice.
Can I compare fixed and variable-rate mortgages?
Absolutely! Our calculator allows you to input different rate types for each scenario. This feature is particularly useful for comparing the potential outcomes of fixed-rate mortgages, which offer stability, against variable-rate options that might start lower but can change over time.
How do I interpret the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios?
GDS and TDS ratios are key metrics used by Canadian lenders to assess mortgage affordability. A GDS under 32% and TDS under 40% are generally considered good. If your ratios are higher, you might need to consider a less expensive home, a larger down payment, or work on reducing other debts.
What's the significance of the "Balance at End of Term" figure?
This figure shows how much your mortgage will remain after your initial term (typically 5 years in Canada). A lower balance indicates you’ve built more equity.
Can I use this calculator for refinancing scenarios?
Yes! For refinancing, input your current home value as the purchase price and your desired refinance amount as the mortgage amount. This will help you compare different refinancing options and see how they affect your monthly payments and long-term costs.
Should I always choose the option with the lowest monthly payment?
Not necessarily. While a lower monthly payment can be easier on your budget, it’s important to look at the total cost over the life of the mortgage. Sometimes, a slightly higher monthly payment can lead to significant savings in the long run due to lower overall interest costs.
How do prepayment options affect my mortgage?
Prepayment options, such as lump sum payments or payment increases, can significantly reduce your overall interest costs and shorten your amortization period. Use the calculator to compare scenarios with and without prepayments to see the potential long-term benefits.
What's the difference between an insured and an insurable mortgage in Canada?
Insured mortgages are required for down payments of less than 20% and include mortgage default insurance premiums. Insurable mortgages (also known as conventional mortgages) have down payments of 20% or more and don’t require this insurance. Our calculator helps you compare these options to see which might be more cost-effective for your situation.
How does the land transfer tax affect my cash to close requirements?
Land transfer tax varies by province and sometimes by municipality (e.g., Toronto has an additional municipal land transfer tax). Our calculator includes this in the cash-to-close calculations, helping you budget accurately for your upfront costs. First-time homebuyers in many provinces may be eligible for rebates, which can significantly reduce this cost.
