Uncover the hidden equity in your home
Turn on the TV, listen to the radio, read a newspaper or talk to someone at the office water cooler. What are we hearing? ‘House prices fall’…. ‘Mortgage rates are going up’…
Okay, are you ready to hear some good news? Let’s talk about what’s really happening and how YOU can benefit.
Firstly, house values are actually stable according to the Canadian Real Estate Association (CREA). The article goes on to say that House sales may cool this fall due to a robust Spring market and that house prices may fall. Hey, that’s okay.. we don’t want to see a runaway market… but that should trigger us to do something now. Take advantage of these incredibly low rates.
Interest Rates are at historical lows and yet I don’t see much news coverage about that…did you know that a 5 year fixed rate can be had for around 3.69% and in some cases even better for qualified borrowers…. Variable rate is also great… 2.30% is an excellent rate…. and Economists are forecasting for no real increases until the Spring…
REFINANCE WHEN RATES ARE LOW
It’s really no secret…. you’ve heard of buy low and sell high?… well, with interest rates it’s ‘borrow when rates are low and get rid of high interest rate debt’….. This is the best time to borrow money. Here’s how you can benefit….
Let’s suppose your situation looks like this:
- have a house worth $350,000
- a mortgage balance of $200,000 @ 5.00% with payments of $1,100/mth.
- credit cards $8,000 @ 12.00% with payments of $240/mth
- a line of credit $10,000 @ 6.00% with payments of $300/mth
- car loan of $15,000 @ 6.00% with payments of $480/mth
- you want to invest some money into rrsps or resps or some other GOOD investment for $20,000….
- your monthly payments total $1,640.
Here’s what you could be doing:
- increase your mortgage by up to $80,000 to $280,000
- pay off all that debt and take the extra funds (up to $47,000) and invest or use as you require
- your payment based on today’s 5 year fixed rate of 3.695 would be $1,427/mth
- your payment based on today’s Variable rate of 2.30% would be $1,227/mth
Your cashflow would actually improve and you would put money in your pocket.
This is just one example of how you could benefit… we all have different needs and different situations…get your finances analyzed by a qualified Mortgage Broker. See how you could benefit….It’s a great time to borrow…
Case study, Consumer Debt, Mortgage Tips, Real Estate Trends
Steve Garganis View All
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.
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