The True Power of Today's Interest Rates when purchasing a home!
There always tends to be one major factor that buyer's consider when purchasing a home and that's price. The truth is, there are 2 main factors that they should be looking at: Price and Interest Rates. Jean-Guy Turcotte, an accredited Mortgage Professional with his partner's at Regional Mortgage Corporation created the chart below to show you the benefit's of today's market. There are still many home buyer's out there with interest rate pre-approvals lower than 4% that aren’t taking advantage of the rates. The chart shows a depiction between the 10 year average 5 year fixed interest rate (from the bank of Canada website) and the current 5 year fixed interest rate.
Yes, I’m sure that a lot of people are aware that the market is saturated with listings at this time, BUT doesn’t this mean it’s an excellent opportunity to buy! A great deal on the house, PLUS a great interest rate means double dipping on the savings!
Savings and Comparison Chart
Purchase Price | 10 year Average (5 year fixed Discounted) 5.35% Column 2 | Today’s Best Rate (5 year Fixed) 4.25% | Savings per month between today and the average discounted rate | Total Savings between today’s best rate and the 10 yr average rate | Today’s buying power of 4.25% interest rate to match payments in Column 2 |
$200,000.00 | $1046 | $911 | $135/month | $8100 | $229,750.00 |
$250,000.00 | $1308 | $1139 | $169/month | $10140 | $287,000.00 |
$300,000.00 | $1570 | $1366 | $204/month | $12240 | $344,500.00 |
$350,000.00 | $1831 | $1593 | $238/month | $14280 | $402,000.00 |
$400,000.00 | $2093 | $1822 | $271/month | $16260 | $459,500.00 |
$450,000.00 | $2355 | $2050 | $305/month | $18300 | $516,500.00 |
$500,000.00 | $2617 | $2278 | $339/month | $20340 | $574,500.00 |
$550,000.00 | $2878 | $2505 | $373/month | $22380 | $631,500.00 |
$600,000.00 | $3140 | $2733 | $407/month | $24450 | $689,000.00 |
*All payments based on 5 year fixed as of June 15th, and with a 35 year amortization. Savings table is based on monthly payments only and there is additional savings if you go with weekly or bi-weekly payments. Compare column 1 to the last column to show the buying power of today’s rates! The 4.25% is a quick close rate, meaning that your deal has to close 30 days from submission date, unfortunately no pre-approvals.
Jean-Guy Turcotte, an Accredited Mortgage Professional with his partners at Regional Mortgage Corporation created this chart to show you the benefits of today’s market. For more information on Jean-Guy’s programs call him at 403-343-1125 or text him to 403-391-2552 or email jturcotte@regionalmortgage.ca.