At what rate does my payment stop paying down the mortgage?
On a variable-rate mortgage with fixed payments, a higher rate means more of each payment goes to interest. Enter what you owe, your payment and today’s rate to see your trigger rate.
Your estimate
TRIGGER RATE
How this is estimated
What the calculator assumes.
Trigger rate and trigger point. The trigger rate is the rate at which your payment only covers interest; lenders must state it in your agreement. Past it, unpaid interest is usually added to the balance. The trigger point is a separate limit on how large the balance can grow compared with the home’s value; reach it and you must raise payments, prepay or pay off the mortgage. Source: FCAC.
Your contract decides. Check your agreement for the compounding and the trigger point. See the fixed or variable guide and the renewal calculator.
Related