Why are you still Renting?
Mortgage rates are at an all time low in Canada. See how much home you could own if you turned your rent into a mortgage.
Why are your still Renting when you can own your home today. The housing market in the Toronto GTA has been going up steadily for the last dozen years and is showing no signs of slowing down. Although doom and gloom has been projected by almost every bank, major lender, CMHC and various economists for the last 5 years, it has yet to happen and in face, it has been going up and up in every major market except a few. But these can be attributed to local market changes such as Calgary and its dependence on the oil sector. If you keep waiting, home prices will just continue to raise, forcing you to pay even more for your new home.
If you look at apartments for rent in Toronto, the story is pretty much the same. Rents have steadily been going up and will in turn keep pace with the real estate market. Did you realize that when you pay rent, you are actually paying someone’s else’s mortgage and property taxes? On top of that, you are most likely paying your own utilities. No one can afford to rent out a property at a loss. They have to cover the cost of the mortgage, property taxes, and maintenance and then a little extra for profit.
Looking at houses for rent in Toronto, basement apartments average around $1200 and condos average around $1500 – $1700. House can run anywhere from $1700 to $3500 per month. Think about how much of that is going right out of your hard earned paycheck and straight into the landlord’s pocket!! Have look at the following chart to see how much home you could be getting for the same amount of rent that you are currently paying.
How to use this Chart. Locate the amount of rent that you pay every month to your landlord, you would be paying the equivalent of a mortgage using a 30 year amortization or 25 year amortization. For example, if your rent is $1400 per month, that rental payment would translate into a mortgage of $350,000 using a 30 year amortization or $309,000 using a 25 year amortization. The above chart is based on 30 year and 25 year amortization a fixed interest rate of 2.59%. Items such as Mortgage Insurance, Property Taxes, Utilities, Condo Fees and insurance are not included. You still need to qualify for the mortgage amount based on your income, debts, and credit history. Down payment may of anywhere between 0% – 20% may still be required depending on your Credit history and the type of property you are purchasing. Yes we do have 100% financing options available and Rent To Own options. Subject to OAC.
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Salim Moorani, BA, MCP | Canada’s best Mortgage Rates Today | Getting a mortgage can be hard, we make it easy® | Mortgage Broker Lic # M14000543 / Brokerage Lic #12136 | 647-773-9001 | info@RedDogFinancial.ca | www.RedDogFinancial.ca | April 23, 2015