One of the largest investments you make in your lifetime is a home purchase. It can be scary and with all the media surrounding interest rates, housing costs and high level of debt Canadians are carrying it can make your head spin. However, buying a home is still an affordable, long-term investment espcially when you factor in today’s low rates.
Here is something for you to think about. In 1990, the average house price was $130,000, the average rate was 12%. This would mean your payment would have been $1,341.47 a month. The amount of interest paid over a 5-year term would have been $42,367.
Now, let’s compare to 2016. The average house price is $315,000 with a rate of 2.69%. You would be looking at a monthly payment of $1441.07. The amount of interest you would have paid by the end of your 5 year term would be $21,886!!!
The reason why I wanted to illustrate these scenarios was to offer some perspective on how affordable houses still are. While the initial down payment can be an obstacle for some, we do have programs that help you with a flexible down payment. And while a monthly rent payment helps pay down your landlords mortgage, a home purchase is a long term investment in yourself through the building of equity within your home. Today’s low rates allow you to apply more money to the principle payment on your house rather than the interest paid to the bank.
I can’t stress enough the importance of working with a mortgage professional like myself who can offer you insight and guidance. Call me today!
Cell: (204) 574-6353