16
April
2009
More on the Current Market
Posted by
Ryan Coffey under:
Nanaimo Real Estate Market; Uncategorized .
This is to add to the post I made yesterday. Those of you who have jobs that are secure enough to weather the economic times who are thinking of becoming first time buyers will want to pay attention to this as well as the investors. (Stop wasting money on rent if you can!) Below is something that came into my inbox from a mortgage broker who sends realtors at my company weekly updates on mortgage rates. As it nicely compliments what I put up yesterday I thought it would be worth posting.
Ryan Coffey
Happy Thursday all:
…and Happy Spring. The birds are chirping, the flowers are blossoming, and the leaves are back on the trees. Spring has sprung; are you ready to spring for it? Did you know that the home of your dreams could be within your reach? Housing prices are down, and mortgage rates are low. Many Canadians are asking and waiting to see if rates go lower. Realistically, mortgage rates are already at historic lows. Currently we have a 5 year quick-close fixed term rate at 3.69%. House prices have become more reasonable, meaning that the home of your dreams may not entail that large mortgage that it would have required last year. It turns out that this “economic turmoil” is creating outstanding opportunities for Canadian homeowners or prospective homebuyers. In addition, with tradesmen discounting services and retail locations advertising “once-in-a-lifetime sales”, it is a great time to look into that renovation that you may have wanted to do last year. Let’s compare some mortgage rates, to get the big picture.
| This year: 2009 |
Last year: 2008 |
|
| Rate: 4.25% |
|
Rate: 5.75% |
|
|
| Mortgage |
Monthly Payment* |
Mortgage |
Monthly Payment |
Monthly Savings |
| $200,000 |
$912 |
|
|
|
| $300,000 |
$1,368 |
$300,000 |
$1,647 |
$279 |
| $350,000 |
$1,596 |
|
|
|
|
|
|
|
|
|
Amortization: 35 years |
|
|
Now assume that housing prices have dropped approximately 10%. Instead of a $300,000 mortgage, one would only require something around $270,000. Comparing this to the larger mortgage with rates from last year (5.75%), your monthly mortgage savings could be as much as $416. It is important to remember utility costs, taxes, etc, which is where your mortgage planner can package advice and explain your options.
Qualified homebuyers have the chance to enjoy the market of a lifetime. The home of your dreams may be closer than you imagined.
Please find attached our most up to date rate sheet, as well as an article summarizing this market of a life-time. Enjoy.
Andrea Nowik
Universal Mortgage Architects
Serving Vancouver Island & the Lower Mainland
Phone: 250-758-5524
Fax: 250-758-4181
Toll Free 1-866-958-5524
Website: www.gregnowik.com
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