The Investor Education Fund (IEF) website has introduced a new mortgage calculator to its arsenal of one-stop tools and calculators.
GetSmarterAboutMoney.ca‘s mortgage calculator enables users to calculate their monthly mortgage payments and immediately see the impact of changes to mortgage term, amortization, interest rates and payments on the lifetime cost of mortgage. Most significantly, the calculator examines scenarios of payment, extra payment and affordability all at the same time.
IEF developed this calculator on the heels of its 2013 Home Equity as a Source of Retirement Income survey, released earlier this year.
A key finding from the survey was that one-quarter of homeowners over 50 expect to have debt on their principal residence after they retire, with a median debt of $71,000.
“When planning your mortgage, it is essential to consider how much debt you can afford to take on, while still being able to save and invest for your long- and short-term goals,” says Tom Hamza, president of IEF, the leading Canadian authority on financial literacy, financial education and research.
“Even small changes to the interest rate and payment schedule can save thousands of dollars over the life of the mortgage,” adds Hamza.