Mortgage calculator in Canada: online loan calculation.
Depending on the maturity dates, loans are divided into short-term, medium-term and long-term.
a) Short-term loans are provided, as a rule, for replenishment of working capital (current lending of working capital) of the borrower. They are most actively used in the stock market, in trade and in the service sector. The repayment period for this type of loan usually does not exceed one year.
b) Medium-term loans are provided for a period of one to three years for both production and purely commercial purposes. The most widespread were in the agricultural sector and with partial modernization of production.
c) Long-term loans are used, as a rule, for investment purposes. Like medium-term loans, they serve the movement of fixed assets, differing in large volumes of transferred credit resources. They are used for crediting reconstruction, technical re-equipment, new construction at enterprises of all sectors of the economy. The average repayment period usually ranges from three to five years, but can reach 25 years or more, especially when receiving appropriate financial guarantees from the state.
To calculate a mortgage, I recommend using an online mortgage calculator in Canada in 2022.
According to the repayment methods , loans are divided into:
1) loans repaid in one amount at the end of the term;
2) loans repayable in installments;
3) loans repaid in unequal shares during the term of the loan (as a rule, with the provision of a grace period).
Loans repaid by a one—time contribution (payment) from the borrower are a traditional form of repayment of short-term loans, which is very functional from the standpoint of legal registration, since it does not require the use of a mechanism for calculating differentiated interest.
The specific conditions (procedure) for repayment of loans repaid in installments during the entire term of the loan agreement are determined by the agreement, used, as a rule, for medium-term loans. For long-term loans for investment purposes, a grace period (up to a year) is often used, during which the borrower does not pay either interest or part of the debt. During this time, the borrower manages to install the equipment and start production.
According to the types of interest rate, loans are divided into: loans with a fixed interest rate and loans with a floating interest rate.