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How much home could your rent buy?
Mortgage rates continue to be wonderfully low and, in fact, homeowners are locking in some of the lowest rates in history. This Great Canadian Mortgage Sale is a good time to take a look at how much mortgage you could afford given your current rent. Your dream home may be more affordable than you think!

$1,250 in rent equals a $264,416 mortgage* and a $271,725 home purchase
$1,500 in rent equals a $317,300 mortgage* and a $324,490 home purchase
$1,750 in rent equals a $359,605 mortgage* and a $366,700 home purchase
$2,000 in rent equals a $423,047 mortgage* and a $430,000 home purchase

Your monthly rent cheque doesn’t have to be money out the window. It could be building equity in your own home.

Keep in mind that home ownership involves costs beyond the monthly mortgage payment like utility bills, insurance, and property taxes. We can help you determine what you can comfortably afford.

Get pre-approved today and have your rate held for 120 days! This way you don't have to worry about rates rising while you are house hunting, and both realtors and sellers will know you're serious, which means you'll be in a good position to get the home you want.

Don't miss out on the Great Canadian Mortgage Sale!

*Assumes 25-year amortization, 5% downpayment, 3.75% mortgage insurance premium, 5-year term, 2.99%, OAC, subject to change. For illustration purposes only.

_________________
Paul Smith
Mortgage Agent
Mortgage Intelligence
Lic# M09000464
P - 905-691-6796
E - paul@bemortgagefree.ca
W - www.bemortgagefree.ca

Found On Facebook: Be Mortgage Free

I think the biggest hurdle is the $100,000 down payment you need to buy a home or yes everyone would rather pay a mortgage for the same price as renting.

I agree, one of the challenges to first time home buyers is obtaining the down payment required, especially with the house prices around the GTA. The minimum down payment required to purchase a house is 5%, so for a $300,000 purchase price, the minimum down would be $15,000. This is by no means a small amount to come up with. However, there are some options available for buyers that are having a difficult time saving for the down payment:

- borrowed from RRSP's (Home Buyer's Plan; up to $25,000 per applicant)
- gifted from a blood relative
- cash back mortgage (5% cash back can be used for down payment)

If any of you are finding it challenging to come up with a down payment, I would be happy to discuss the options that are available to you.

Feel free to contact me at your convenience.

_________________
Paul Smith
Mortgage Agent
Mortgage Intelligence
Lic# M09000464
P - 905-691-6796
E - paul@bemortgagefree.ca
W - www.bemortgagefree.ca

Found On Facebook: Be Mortgage Free

Great information! Thanks for putting it out there.

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LEON VAYMAN, BROKER
RE/MAX Real Estate Centre Realty Inc., Brokerage (MILTON Office)
Direct/Text: 905-616-7307
www.LEONVAYMAN.com
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CLICK HERE to Listen to what Leon's past clients are saying!

I had no idea the minimum was 5%.

So if I buy a house for $400,000 the bank will give me $20,000 cash back which I can use towards the 5% down payment? Meaning I don't have to come up with 5% on my own?

That is correct. The lender will forward your lawyer the 5% on closing and the funds will be put towards the down payment.

_________________
Paul Smith
Mortgage Agent
Mortgage Intelligence
Lic# M09000464
P - 905-691-6796
E - paul@bemortgagefree.ca
W - www.bemortgagefree.ca

Found On Facebook: Be Mortgage Free

What's the catch? Higher interest rate? I'd obviously have to go through one of the big banks?

So the challenge is yes, you are charged a premium for the ability to put zero down on your mortgage. The current rate on the 5% cash back that we are discussing is 4.85%. And although it is higher than the current discounted rates available, it is still a relatively low rate when compared historically to rates. Something else that you need to be aware of with all cash back mortgages is that if you want to get out of the commitment early, you will be responsible for paying back the cash back amount on a prorated basis.

This product is only available through mortgage agents/brokers, you will not find this mortgage offered from any of the big banks. The big ones will do cash back mortgages, but the cash back cannot be used for the down payment. You would still need to come up with the 5% down. Also, with all other cash back mortgages, the 5% is based on the mortgage value, not the purchase price. For example, you purchase a home for $100,000, you would need to put down $5,000, but the cash back amount would be $4,750 ($95,000 x 5%).

If you would like more information, please do not hesitate to contact me.

_________________
Paul Smith
Mortgage Agent
Mortgage Intelligence
Lic# M09000464
P - 905-691-6796
E - paul@bemortgagefree.ca
W - www.bemortgagefree.ca

Found On Facebook: Be Mortgage Free

so youre saying I can buy a $650,000 home with now money down through you, I just pay 5% interest on the loan? you will lend out $650,000 to me? what income qualifies for that between me and my hubby? yay I kept my ticket for the 2nd purchase!