Using the Canadian Mortgage Guide

Using the Canadian Mortgage Guide

Click the Canadian mortgage button from the guide screen. The Canadian mortgage dialog window is displayed as shown below with its standard defaults. This guide's assumptions are listed in the box above the input fields.

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Canadian mortgage dialog input fields

Note: Use [Tab] to move from field to field or click within each field.

  • Start date The start date defaults to the current date. Click in the Start date field and enter a date or click the Calendar button and select the desired date. (See Date shortcuts.)
  • Loan amount Type the dollar amount of the loan. For this example 300K (for 300,000.00) was entered. (See Amount shortcuts.)
  • Loan term (in years) The drop-down list has 2 options: 25 or 30 years. You can choose an option from the drop-down list or type 25 or 30 in the Loan term field. For this example [Tab] (for default of 25 years) was entered.
  • Interest rate This is a percent field where the interest rate of the loan should be entered. For this example 4 was entered (for 4%).
  • Payments on first day of month (prepaid interest) This checkbox toggles whether payments are made one month after the Start date or on the first day of the month. For this first example the box was left in its default/unchecked state.
  • Create Builds the cash flow based on all entered data.

The pre-populated Cash Flow Data window should now appear as shown below. The cash flow can be further adjusted to fit your specific Canadian mortgage scenario.

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Cash Flow Data fields

  • Label field includes the name of the guide used. (See Edit the Label field.)
  • Computation Interval is set to Monthly per this guide's assumptions. (See Computation Interval.)
  • Nominal Annual Rate is set to the Interest rate of 4%.
  • The calculation settings per this guide's assumptions (Canadian Semiannual Straight-line amortization and a 365 day year) are displayed at the bottom left. You can click on the displayed settings to quickly access the Calculations group on the Configuration ribbon where you can change these settings.

Cash Flow Matrix fields

  • Start date The Date in the Loan Event (line 1).
  • Loan amount The Amount - 300,000 - in the Loan Event (line 1).
  • Loan term (in years) The Number in the Payment Event (line 2) = 300 (25 years).
  • Payments on first day of month (prepaid interest) Notice the Date on the Payment Event (line 2) is one month (per this guide's assumptions) after the Date on the Loan Event (line 2).

Prepaid Interest example

Below is the pre-populated Cash Flow Data window with the same Canadian mortgage dialog inputs as above BUT with the Payments on first day of month (prepaid interest) checkbox checked. The cash flow can be further adjusted to fit your specific Canadian mortgage with prepaid interest scenario.

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Cash Flow Data fields

  • Label field includes the name of the guide used. (See Edit the Label field.)
  • Computation Interval is set to Monthly per this guide's assumptions. (See Computation Interval.)
  • Nominal Annual Rate is set to the Interest rate of 4%.
  • The calculation settings per this guide's assumptions (Canadian Semiannual Straight-line amortization and a 365 day year) are displayed at the bottom left. You can click on the displayed settings to quickly access the Calculations group on the Configuration ribbon where you can change these settings.

Cash Flow Matrix fields

  • Start date The Date in the Loan Event (line 1).
  • Loan amount The Amount of loan - 300,000 - in the Loan Event's Points & Fees details box (line 1). (See Entering Points & Fees.)
  • Loan term (in years) The Number in the Payment Event (line 2) = 300 (25 years).
  • Payments on first day of month (prepaid interest) Notice the 20 Prepaid interest days (number of days from the Start date to the beginning of the first payment period) in the Points & Fees details box (line 1) and that the Date on the Payment Event (line 2) is on the 1st of the month.