Understanding Your TD Canada Trust Mortgage Payment
Navigating the mortgage process can be complex, and understanding your potential monthly payments is crucial for financial planning. This calculator is designed to give you an estimate of your mortgage payments based on key factors, similar to what you might find when exploring mortgage options with TD Canada Trust.
How the Calculation Works:
The core of this calculator uses a standard mortgage payment formula to determine your periodic payment amount. The formula accounts for:
Principal Amount: The total amount you are borrowing for the property.
Annual Interest Rate: The yearly rate charged by the lender. This rate is typically converted to a periodic rate for calculation.
Amortization Period: The total length of time over which your mortgage will be repaid, usually measured in years.
Payment Frequency: How often you make payments (e.g., monthly, bi-weekly, weekly). This impacts the total number of payments and the size of each individual payment.
The formula used is derived from the present value of an annuity formula, rearranged to solve for the payment (PMT):
PMT = [ P * i ] / [ 1 - (1 + i)^-n ]
Where:
P = Principal Loan Amount
i = Periodic Interest Rate (Annual Rate / Number of periods per year)
n = Total Number of Payments (Amortization Period in Years * Number of periods per year)
For example, if you have an annual interest rate of 5% and make monthly payments, your periodic interest rate (i) would be 0.05 / 12. If your amortization period is 25 years, the total number of payments (n) would be 25 * 12 = 300.
Important Considerations with TD Canada Trust:
Mortgage Types: TD offers various mortgage products, including fixed-rate and variable-rate mortgages. This calculator primarily estimates for a fixed-rate scenario. Variable rates can fluctuate, affecting your payments.
Term vs. Amortization: While amortization is the total repayment period, a mortgage 'term' is the shorter period (e.g., 1, 3, or 5 years) for which the interest rate is fixed. At the end of the term, you renew your mortgage, potentially at a new rate.
Fees and Other Costs: This calculator focuses solely on principal and interest. Remember to factor in other costs such as property taxes, homeowner's insurance, mortgage default insurance (if applicable), legal fees, and potential appraisal fees.
Pre-payment Options: TD Canada Trust often allows for mortgage pre-payments, which can help you pay down your mortgage faster and save on interest.
Mortgage Default Insurance: If your down payment is less than 20% of the purchase price, you will likely be required to get mortgage default insurance (e.g., CMHC), which adds to your overall cost.
This calculator is a tool to help you estimate your potential mortgage payments. For precise figures and to discuss specific mortgage products and rates available through TD Canada Trust, it is always recommended to consult directly with a TD mortgage specialist.
function calculateMortgage() {
var principal = parseFloat(document.getElementById("principal").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var amortizationPeriod = parseInt(document.getElementById("amortizationPeriod").value);
var paymentFrequency = parseInt(document.getElementById("paymentFrequency").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
if (isNaN(principal) || principal <= 0) {
resultDiv.innerHTML = 'Please enter a valid mortgage amount.';
return;
}
if (isNaN(annualInterestRate) || annualInterestRate <= 0) {
resultDiv.innerHTML = 'Please enter a valid annual interest rate.';
return;
}
if (isNaN(amortizationPeriod) || amortizationPeriod <= 0) {
resultDiv.innerHTML = 'Please select a valid amortization period.';
return;
}
if (isNaN(paymentFrequency) || paymentFrequency 1 ? paymentFrequency : 1);
// Handle case for specific frequencies like bi-weekly or weekly where rate is divided by 12 but payments are more frequent
if (paymentFrequency === 26 || paymentFrequency === 52) {
monthlyInterestRate = (annualInterestRate / 100) / 12;
} else if (paymentFrequency === 24) {
monthlyInterestRate = (annualInterestRate / 100) / 12;
}
// Total number of payments
var numberOfPayments = amortizationPeriod * paymentFrequency;
var monthlyPayment = 0;
// Calculate monthly payment using the mortgage payment formula
if (monthlyInterestRate > 0) {
monthlyPayment = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// If interest rate is 0, payment is simply principal divided by number of payments
monthlyPayment = principal / numberOfPayments;
}
// Adjust for different payment frequencies
var actualPayment = monthlyPayment;
if (paymentFrequency === 26) { // Bi-Weekly Accelerated
actualPayment = (principal * monthlyInterestRate) / (1 – Math.pow(1 + monthlyInterestRate, -numberOfPayments));
actualPayment = actualPayment * (12/26); // Adjusted for bi-weekly
} else if (paymentFrequency === 52) { // Weekly
actualPayment = (principal * monthlyInterestRate) / (1 – Math.pow(1 + monthlyInterestRate, -numberOfPayments));
actualPayment = actualPayment * (12/52); // Adjusted for weekly
} else if (paymentFrequency === 24) { // Bi-Weekly Standard
actualPayment = (principal * monthlyInterestRate) / (1 – Math.pow(1 + monthlyInterestRate, -numberOfPayments));
actualPayment = actualPayment * (12/24); // Adjusted for bi-weekly standard
} else if (paymentFrequency === 12) {
// Monthly payment is already calculated as the base
}
var totalInterest = (actualPayment * numberOfPayments) – principal;
var totalCost = principal + totalInterest;
resultDiv.innerHTML =
'Estimated Payment: $' + actualPayment.toFixed(2) + ' per payment' +
'Total Interest Paid: $' + totalInterest.toFixed(2) + " +
'Total Cost of Mortgage: $' + totalCost.toFixed(2) + ";
}