Lots of buzz today over the Bank of Montreal's reduction of their mortgage rate to 2.99% for a 5 year fixed term. The only catch - it's only available until January 25th.
Likewise, TD Canada Trust is offering teh same rate for a 4 year term.
Why is this important? Well, if you have been sitting on the fence regarding buying a house or remortgaging your current home, it won't get any cheaper than this.
To give you an example:
• Above rates are approximate and based on a 25 year ammortization. May be available as a 30 year ammortization period (resulting in smaller monthly payments) in the next week.
If you are renting and don't currently own your home, NOW is the time to buy. Owning is cheaper than renting! Especially if you are purchasing a property with a suite:
For example, there are many homes with suites in Nanaimo for $350,000. Your monthly financial committment with 5% down would be:
$1624.74 (Home payment )
- $850 (2 bedroom suite rental)
That is CONSIDERABLY CHEAPER than renting a property. Plus you are putting part of that money back in your pocket every month as you pay down the mortgage.
AND . . . properties in the area generally appreciate at about 3% per year. That's $10,500 a year on a $350,000 house. $10, 500 that you could be putting back into yourown pocket outside of your mortgage payments.
Watch for other banks to introduce low rates as well in the next few days. But keep in mind that you have to apply for and be approved for the mortgage at these special rates BEFORE JANUARY 25th. I can introduce you to mortgage brokers or account managers at any of these banks to get you started.
Contact me today to start looking for a house. firstname.lastname@example.org
or call me at 250-758-3700
Wes Smith, RE/MAX OCEAN POINTE