Is is that time of the week again where we will see two banksâ€™ mortgage calculator face off in the Mortgage Calculator matches. The great news about this match is that it marks the beginning of the second round, otherwise known as the semi-finals. This week the two contenders are ING Direct Canada and Royal Bank of Canada (RBC).
In the first five matches of the series we saw BMO compete with CIBC, Scotiabank compete against TD , ING Direct Canada go up against Presidentâ€™s Choice Financial, RBC face off against NBC ,Â and CIBC go up against Scotiabank.
In this comparison we will be examining the following figures:
Mortgage amount:Â Â Â Â Â Â Â Â Â Â Â Â Â Â $100,000
Mortgage Type and Rate:Â Â Fixed 4.04%
Amortization Period:Â Â Â Â Â Â Â Â Â Â 25 years
To start things off, I have prepared a comparison of what these two mortgage calculators offer.
|Functionality||ING Direct Canada Mortgage Calculator||Royal Bank of Canada Mortgage Calculator|
|Mortgage Rate Selection|
|Evaluate Different Scenarios|
|Amortization Period Selection|
|Payment Savings Chart|
|Mortgage Insurance Included|
|First Time Home Buyer Credits|
|Land Transfer Tax Included|
|Mortgage Calculator App||*|
|Appearance||ING Direct Canada Mortgage Calculator||Royal Bank of Canada Mortgage Calculator|
|Easy to Read|
|Colors and Design|
*mortgage calculator within mobile app
As you can see in the charts above, there really is no difference between these two mortgage calculators with the exception that ING offers a mortgage calculator app (well a mortgage calculator within their mobile banking app), and RBC offers users the ability to compare scenarios.
To start the comparison off, I feel that it would be appropriate to examine the features they have the same, especially the extra payment option.
As you can see below, RBC allows you to Double up on your payment and add in an anniversary payments once every 12 months. This is a great way to reduce the life of your mortgage and it is beneficial to see how it affects the overall lifespan by including these payments.
A unique feature that RBC holds that ING does not have is the ability to skip a payment once every 12 months. Personally, I would not advise using this feature as it is a lot better to make your payments as frequent as possible to allow you to pay it off faster. However there could be a case where you need to miss a payment as some financial matter could come up causing you to drain your funds.
Now ING on the other hand allows you to have the same features outside of skipping a payment. I do like the fact that ING offers you to input regular payment increases, allowing you to see how much faster your mortgage can be paid off by increasing your current mortgage payment.
Now RBC offers users the same ability (that is to increase their current mortgage payment), however the fact is, it is not shown on their mortgage calculator. As you can see above, there is everything from a Double-up option, to a Skip-a-payment option.
Out of these two extra payment features, I would have to say that ING wins due to the fact that they show everything someone would need when considering a mortgage. Now RBC offers unique features, but the fact that it is unique makes it hard to compare it to other banks. I would have preferred if RBC at least offered a way to input increases to the current mortgage payment.
How do these Mortgage Calculators differ?
As it is shown in the chart above, ING offers a mortgage calculator, while RBC allows you to compare scenarios.
I do love RBCâ€™s compare scenario feature, but the fact is I do not like how it is shown. As you can see below, it is just a table with numbers and not that easy on the eyes; in order to view a amortization paydown and payment frequency chart you need to select one scenario.
ING might not offer a compare scenarios ability, but they do offer a mortgage calculator within their mobile banking app, making it a lot more unique than RBCâ€™s mortgage calculator.
In terms of design I find that INGâ€™s mortgage calculator just seems to jump out at your more, especially since it is in bright orange.
RBCâ€™s colors are not terrible, but when compared to INGâ€™s they fall short. RBC shows everything you need to see, just like ING, however the only issue I have with their current design is the fact that you cannot compare payment frequencies in one page. Essentially, it makes their compare scenario somewhat useless seeing as you can only view the payment frequency you selected when comparing scenarios.
Who is the winner?
This was not an easy decision; both banks offer great mortgage calculators, and plenty of features on top of it. After much deliberation, I have come to the conclusion that the winner is ING. The fact is, ING shows everything they need to show, despite not having a compare scenarios function. Their appearance is much better than RBCâ€™s and the only reason RBCâ€™s extra payment feature stands out is because they offer mortgage options that ING does not have. I would have preferred it if they included the option to increase the current mortgage payments on the chart, but the fact is that they did not.