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Lower Interest Rates and Declining Home Prices = Big Saving for Buyers


Blog by Charlie Mackenzie | February 2nd, 2009


Lower home prices and lower financing rates mean good news for purchasing power in today's real estate market!  Let me give you a hypothetical example of a home that was listed for 

$759,000 in November 2008 that has now been reduced by 8%:

 

November 2008
Purchase Price - $ 759,000
Down payment -  $ 75,900 (10%)
Mortgage Amount - $683,100
Interest Rate - 5% (closed variable)
Monthly Payments - $ 3,972.65
Qualifying Income - $152,441

 

January 2009 - Price reduced to $ 699,000 today (hypothetical only):
Purchase Price - $ 699,000
Down payment -  $ 69,900 (10%) LOWER
Mortgage Amount - $629,100 LOWER
Interest Rate - 3.8% (closed variable)
Monthly Payments - $ 3,241.35 LOWER by $731.30 per month
Qualifying Income - $124,370 LOWER by $28,071


For more information on current interest rates and finance options available in today's market, contact Marie Johnson of TD Canada Trust, 604.761.1921