The Canadian Real Estate Association has released its latest numbers, showing that existing home sales rose in November. The association cites low mortgage rates as the major factor in the increase in sales.
It’s certainly true, five year mortgage rates are the lowest I’ve seen (and I’ve been brokering nearly five years). When I started five years ago, the five year fixed rate was approximately 6%. Let’s compare the difference five years can make!
$250,000 mortgage over a 30 year amortization @ 6.00% = $1,487.06/month
$250,000 mortgage over a 30 year amortization @ 3.39% = $1,104.04/month
That’s a whopping $383.02/month in savings! Not only have house prices come down substantially from 2006-2007 so have rates creating what may turn out to be the perfect time to purchase your first home!
If you’d like to play around and calculate some mortgage payments yourself, please go to my calculator: http://www.youredmontonmortgage.com/index.php/mortgage_calculators
Thinking about getting into the housing market and not sure how to start? Click here to apply now, I’ll give you information on how much you qualify for and how to improve your credit situation (should it need improving). Of course, if you’re simply in the information gathering stage please feel free togive me a call or send me an email. I’d be happy to answer your questions!
Article: Househunting.ca “Existing home sales rise in November”