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Create a smoothed-payment loan

At least one loan must be entered to use this feature
  Loan smoothing  
  Loan smoothing selection  
Selected loans Loan Type Loan duration Interest rate Borrowed amount Total cost
  - Undefined loan
  - Undefined loan
  - Undefined loan
  - Undefined loan
  - Undefined loan
  - Undefined loan
  - Undefined loan
  - Undefined loan

  Loan terms  
  Borrowed amount : $  
  Loan duration :
  Annual interest rate : %  
  Type of interest rate :

Select the loans for which you would like to calculate a smoothed payment, and specify the terms of the smoothed loan.

This page allows you to calculate a hypothetical loan that combines the different payments due on one or more loans, in order to obtain a combined, constant payment amount. Graphically, we speak of ‘nesting” a loan.

After clicking “Calculate”, the smoothed (constant) payment amount will be displayed. In some situations, the loans cannot logically be combined in this way because a negative payment would result. If this happens, a warning message will appear.

If the loan combination results in several different payment increments during the smoothing period, three other alternatives will be automatically displayed for comparison: a loan with a partially deferred payment during the first increment; a loan with a fully deferred payment; and a loan with constant payments.

If the loan combination results in only one payment increment during the specified period, smoothing is not necessary. Only one alternative with constant payments will be displayed.

Guide to using this form

Loan selection – Select the loan or loans for which you would like to calculate a combined, constant payment amount. The payment frequency and first payment date will be automatically taken from the loan information already entered; if more than one loan is selected, these must be the same for all loans. You may need to go back and temporarily modify these fields for some of the loans, in order to perform the smoothing calculation.

Selected loans – The selected loan or loans are used in the calculation according to their initial conditions. Any other operations that may have been performed, such as an early repayment (or other changes to the payment schedule) are completely ignored. For adjustable-rate loans, the simulation built into the loan is ignored.

Smoothed loan duration – The duration of the smoothed loan may be greater than, less than, or equal to those of the other loans. The smoothing will only be performed over the specified period.

Smoothing calculation results – The results of the smoothing calculation can be saved as a graduated payment loan (i.e., a loan with different payment increments), by clicking on the “manage this loan” link. There will be no connection between this new smoothed-payment loan and the loans it was calculated from; they can be worked with independently.

Theoretical loan cost – The theoretical loan cost displayed is equal to the sum of all the payments minus the borrowed capital. It may differ slightly from the actual total cost that is displayed when a complete payment schedule is generated, due to monetary rounding differences. By the same token, there may also be a slight discrepancy (on the order of the centime) in the theoretical payment amount of the last increment when a loan is transformed into several increments.

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