The BMO mortgage calculator works by providing comparative figures under different mortgage scenarios, according to BMO. Depending on the size of the mortgage applicants would like to apply for, the calculator provides a guide to determining the payable amounts.
Available online, the calculator allows mortgage applicants to key in the mortgage amount, followed by its term – this ranges from six months to 18 years and could be fixed or variable, as illustrated by BMO. The interest rate on an individual mortgage depends on the mortgage term chosen. The longer the mortgage term, the higher the interest rate payable, according to BMO. Applicants then chose the payment frequency, which ranges from weekly or biweekly to semimonthly and monthly.
The calculator also features a field for filling the amortization period of the mortgage. Upon filling all the sections in the calculator, applicants click on the recalculate button. The results show the payment amount based on the payment frequency selected, the interest cost based on the mortgage term and the cost at amortization.
The last field on the calculator allows users to input special payments, such as lump sum payments in a given period. The calculator also allows users to factor in skipped payments, as demonstrated by BMO. Based on the calculator's results, prospective mortgage applicants at the Bank of Montreal can opt for a suitable mortgage plan.