MORTGATE RATES INCREASE

Mortgage Rates Increase

Canadians have been enjoying historically low mortgage rates for some time now, but as economists predicted, we recently saw them increase. For example, the 2.99% 5-year fixed rate is now up to 3.49%. While rates seem to be in a holding pattern for now, there could be more increases to come.   How does this affect a Buyer? A slight increase can have a significant impact on monthly payments. For instance:


A 1% difference on your mortgage rate on a $250,000 mortgage at 3.49% over a 25 year amortization period your monthly payment would be approximately $1,246. The same $250,000 mortgage at 4.49% at 25 years would be about $1,382 per month. That's a difference of $136 per month, or $1,632 per year. If you are contemplating a new home purchase, there is no time like the present! Your purchasing power is never better than now!

Lisa Moldenhauer

Lisa Moldenhauer

REALTORĀ®
CENTURY 21 Assurance Realty Ltd.
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