So there was talk of mortgage rates going up? Uh....that's not going to happen! The Investor's Group just announced that they will be dropping their rate to 1.99% on a variable mortgage!!! What does this for mean for a purchaser? Let's say you needed a mortgage of $450,000. If you were eligible for a 2.99% variable mortgage on a 5-yr variable, on a 25-yr amortization, your monthly payments would be $2131.62 per month. However, if you were to take the same mortgage but at 1.99%, then your monthly payments would be reduced to $1905.16! So, I'd say that gives a purchaser a bit more buying power! :)
With rates at even a lower, all-time low, if you've been thinking of buying a home, go for it! The market has seen an upswing, with properties selling quickly, sometimes in just a matter of days. Many areas are seeing a sales-listing ratio of 25-30%! When the market goes from favouring buyers, to favouring sellers...it is very important to work with a professional Realtor who will represent you with your best interests at heart and will get you the property! Call me today if you've been thinking of getting into the market or even if you've been thinking of getting an secondary property.
Look forward to hearing from you!
For more information on the reduced interest rate, click here.