Final answer:
The monthly mortgage payment for a house bought in Calgary in 2020 with a 25% down payment, a loan amount of $337,500, a 6% interest rate, and a 25-year mortgage is approximately $2,077.41.
Step-by-step explanation:
To calculate the monthly mortgage payment for this scenario, we need to determine the loan amount and the monthly interest rate. The down payment is 25% of $450,000, which is $112,500. So, the loan amount is $450,000 - $112,500 = $337,500. The interest rate is 6% annually, which is 0.06 divided by 12 months, resulting in a monthly interest rate of 0.005. Finally, we need to calculate the monthly mortgage payment using the formula for a fixed-rate mortgage:
Monthly Payment = (Loan Amount × Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate) ^ (-number of months))
Plugging in the values, we have:
Monthly Payment = ($337,500 × 0.005) / (1 - (1 + 0.005)⁽⁻²⁵ˣ¹²⁾
Simplifying the calculation, we get the monthly mortgage payment to be approximately $2,077.41.