Mortgage Advice From An Expert
September 10, 2015
Are you finding it difficult to understand all of the real estate promotions out there? Don’t worry, you are not alone! That is why we work with the best in the industry – to make sure you, our valued customers, find a mortgage that best suits your needs and to make sure you understand if you are getting the best deal in Saskatoon.
We asked Shawna MacDonald, a mortgage specialist and Canada’s Top Mortgage Broker, what would be the best deal for our future homeowners. When purchasing your first home MacDonald advises to always read the fine print. What may appear to be a great deal up front may actually cost you more in the long run.
MacDonald explains that some promotions such as “live for free” or “borrowed down payments” may not always be in the homeowener’s best interest. Let us break it down for you.
The most common mortgage is a 5 year fixed with a 25 Year amortization. A competitive rate today would be around 2.69%; and the average price of a home in Saskatoon is around $330,000. So if we compared a “live for free” for a year versus $15,000 discount on the price this is what we get.
Live for free would likely include:
Compare “Live Free for a Year” versus a developer offering a $15,000 discounted purchase price:
|Monthly Payment Over 60 Months||$90,581.40||$86,464.20||$4,117.20|
After the first 5 years the homeowner who went with the discounted price would already be more than $2,500 ahead. When the homeowner decides to renew their mortgage for another term they are renewing at a lower rate, again saving them more money on interest paid. Or if the homeowener wants to sell the home they will have more equity towards their new purchase.
Bottom line is the price and doing what is best for you, our valued customers. If you would like to discuss financial options that would best meet your needs please contact us to set up an appointment with our Arbutus Communities sales team and or contact Shawna MacDonald.