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What to do, what to see? In Port Alberni, BC

Why low mortgage rates matter

Posted on Apr 2, 2014 in Mortgage Market Updates and News

Even small differences in payments can add up.

Assumptions

-you're buying a house at the average national price in February of $406,372
-you have a 5 per cent down payment
-CMHC mortgage insurance costs are added to your principal


(table source: RateSpy.com, Canequity.com)

Mortgage Example                                                      Bi-weekly accelerated payment       Total Payments Over Five Years


Five-Year Fixed
2.84 per cent (best rate found online)                                        $922.41                                            $119,913
2.99 per cent (BMO's special offer)                                            $937.60                                           $121,888
3.39 per cent (another bank's best special offer)                       $978.75                                            $127,237

Variable rate
2.29 per cent (prime minus 0.71; best rate found online)           $867.87                                           $112,823
2.40 per cent (prime minus 0.6; a widely available discount)     $878.63                                           $114,222
2.55 per cent (prime minus 0.45; discounted bank rate)            $893.42                                            $116,145