November 23, 2022 nkad3

Are Mortgage Calculators Useful?

In preliminary steps, yes, they are useful. However, to rely on mortgage calculators 100% – we advise against this.


There are two types of mortgage calculators that mortgage seekers often search for:

  1. Mortgage affordability calculators
  2. Mortgage payment calculators


Mortgage Affordability Calculator:

This type of mortgage calculator helps applicants, on a very basic level, determine their maximum mortgage affordability (or purchasing power). It used variables such as income, debt, credit, down payment, property taxes, and heating, to determine how much an applicant (or group of applicants) can afford to borrow. This type of mortgage calculator is meant to run quite simple scenarios, so they are not as intuitive as a Mortgage Broker or Agent with many years of experience. Complex scenarios often require more data to accurately calculate a borrower’s mortgage affordability – data that a mortgage calculator simply does not consider.

Mortgage Payment Calculator:

This type of mortgage calculator is more simple and more accurate. It computes a mortgage payment based on the inputs of a loan amount, interest rate, frequency, and amortization. These calculators are also meant to be used in preliminary steps, rather than being relied on 100%. But, unlike a mortgage affordability calculator, the calculation will likely be 100% correct based on the user’s inputs – it’s just a question of whether the user’s inputs are accurate in the first place.


Mortgage calculators are great tools as they empower borrowers to be self-sufficient in the initial phases of obtaining mortgages – rather than relying on a mortgage professional right from the beginning. Sure, calculators served us well in school, but there are so many variables that need to be taken into consideration with personal finances that are hard to figure out, without the right credentials and experience.


If there’s advice, we’d give to those using mortgage calculators, it’s this:

  • Use the calculator to help educate yourself first, but always run the results by a mortgage broker or agent to validate their accuracy.

(905) 455-5005.

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