Differential Calculator

Compare mortgages of different rates.

Select Canadian or U.S. Mortgage. YEARS   MONTHS
Loan Amount : Mortgage Term &
Market Rate : % Amortization &
    3.7 % is 3 yr mode of Current Rates
Compare Rate : %
Less than Market = Beneficial


To compare financing, input Compare Rate and Market Rate with mortgage amount, term, and amortization. Then click on CALCULATE.

Use this calculator to compare discounted mortgage rate offers, the costs or benefits of assuming existing mortgage financing, or calculating the Interest Rate Differential and payout penalty on your mortgage.

A $ 100,000 mortgage at current market rates of 3.7 % with a 36 month term and 300 month amortization results in monthly payments of $ 510 and a balance at term maturity of $ 92,253.

A higher than market mortgage rate of 6 % would result in a payment that is $ 130 higher each month and a balance at term maturity that is also $ 2,013 higher. The present value of the differences in payments with this adverse financing is $ 6,226.

You would be WORSE OFF with the 6 % mortgage by a Present Value of $ 6,226.



Interest Rate Payments of $ 510 per Month Balance at TERM
MARKET
3.7 %
36
Months
$ 92,253
Canadian Calculation - Compounding Semi-Annually
Payments of $ 640 per Month
COMPARE
6 %
36
Months
$ 94,265


$ 130 higher per Month
DIFFERENCE
-2.299 %
36
Months
DIFFERENCE
$ -2,013

PRESENT VALUES (PV) ( 3.7 % discount )
PAYMENTS :
$ -4,422
BALANCE :
$ -1,803

$ -6,226 PV Cost of Adverse Financing (6 % OVER market 3.7 %)
$ -6,690 Absolute Cost of Adverse Financing
COMPARE RATES
TERM OURS BANKS
6.mo
1yr.
3yr.
5yr.
0000%
0000%
0000%
0000%
4.00%
3.10%
3.70%
5.24%

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Figures are rounded to nearest dollar.
The above information is for illustrative purposes only. We cannot guarantee its accuracy. Please contact your financial advisor for more specific information.
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