Whistler Blog

Cost of Home or Payments on the Home?

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In the real estate mortgage news these days there is a story that keeps on being told.  Mortgage rates are going to go up.  Unfortunately they have been saying that for a couple of years and it hasn’t really happened yet. See this link to the 5-year rate history  They have actually gone down since I have been listening to the “rates have to go up” projections.  However things do appear to be changing as the TD and RBC have raised their one year rates see here. However there 5-year rates have not changed, why worry about the 5-year rate well that is how the banks and lenders usually qualify you. So what does this mean for buying homes in Squamish,  well it means that now is probably the best time to get a mortgage on that new home you have been looking for, or if you want to  re-finance your existing home.  Of course Realtors will always say it is a great time to buy, it’s our job.    Mortgage Brokers like Marc Belzile who works closely with us,  are also always willing to help with the re-financing or getting your first mortgage. But what do I mean with the title.  Cost of a new home verus payments.  This is just food for thought.  Do you remember how much you paid for your last car? Or do you know what your payments are?  This is the key.  With mortgage rates low, the payments on a new home are well as low as they can go.  If you play with the mortgage calculator you can see that a 1% increase in rates can make a difference.  I put in $350,000, 20yr, Monthly at 2.94% and then tried the same with 3.94%.  Total difference $176.53 per month or $2,118.36 per year. So just something to think about, keep an eye on the rates if you are in the market, if prices don’t change on what you are interested in buying then holding onto the lower rate can save you a bundle. Just a thought. Pearce - 1021 Condor - NEW front Love the House – 1021 Condor Road, Garibaldi Highlands $725,000.  Now what are the monthly (bi-monthly, weekly etc..) payments? Give Marianne Wilson a call 604-892-7515.