Interest Rates went down yesterday again – AMAZING! The Bank of Canada’s Key Rate is now down to 4.25%, so what does that mean for you?
Well, if you currently have a Variable Rate mortgage, then your rate will go down by the .25% decrease and your payments will be lower.
If you are about to get a mortgage, then these lower rates are now available to you!
Let’s see how much every $100,000.00 costs according to today’s rates:
As you can see, current and competitive bank rates are 4.64% on a 5 year Fixed, and 5.59% on a 5 year Variable (rate fluctuates according to the Key Rate). Assuming a 30 year amortization (takes 30 years to pay off), your payment would be …
$512.39 per 100K on a fixed
$569.42 per 100K on a variable
As you can see here, current and competitive market rates (from a mortgage broker with buying power) are 4.19% on a 5 year Variable and 5.30% on a 5 year Fixed. On the same amortization as the bank rates, your payments would be…
$486.33 per 100K on a fixed
$551.73 per 100K on a variable.
So if you are looking to buy a home, look at those amounts per 100K of contemplated purchase price to figure out what your payments will be!
Here are the top 3 questions we get, that I will answer BRIEFLY, but will absolutely elaborate on in further posts:
- Are there any other monthly costs to consider? Absolutely. Property Taxes, Insurance, potential Condo Fees, Maintenance Budget and Utilities are all important to consider.
- What’s the difference between Bank Rates and Market Rates? One is from a bank, and one is from a mortgage broker.
- Why would anyone take the higher rates? Because some people prefer the comfort of a locked in (fixed) rate, and some are more comfortable with a big bank instead of a mortgage broker
That’s a quick snapshot of how Mortgage Rates are affecting your Budget as of September 5th 2024.
If you would like a referral to a big bank or my personal mortgage broker for a FREE Pre-Approval on a Mortgage to either buy, invest or refinance – please just ask 🙂
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