Mortgage Blog

What Could You Do with an Extra 8000 Dollars?

May 22, 2018 | Posted by: Brandi Pierik and Matthew Pierik - Red Deer and Calgary Mortgage Brokers

Check out some mortgage options that could give you just that!

Check Out Record-Low Variable Rates!

Hands down, the most common mortgage product option for Canadians is the five-year fixed rate. But, it’s not the most cost-effective – especially right now. And it certainly doesn’t make sense considering most people, on average, break their mortgages about every three years into their term for a variety of reasons. Life happens!

Still, banks and the media have convinced Canadians that the five-year fixed option is the one-size-fits-all mortgage. Sure, fixed rates offer a guaranteed regular payment over the term of your mortgage, but should you be researching other options? Absolutely!

If you’re in the market for a mortgage or your current term is up for renewal soon, the variable-rate option is worth exploring – especially since banks and other lenders are offering record-low rates that won’t likely be around much past the end of May!

Variable vs fixed savings example
If you have a $300,000 mortgage, here’s an example of how much you could potentially save over the next five years by going variable:

Fixed Rate: 3.34%
Monthly Payment: $1,472.59
Payments Made Over 5 Years: $88,355.40

Variable Rate: 2.45%
Monthly Payment: 1,336.44
Payments Made Over 5 Years: $80,186.40

Potential Five-Year Savings: $8,169

What could you do with an extra $8,000+?!

Your best bet is to give me a call or shoot me an email and I can do a free assessment to determine your best option. You have nothing to lose but the potential savings!

Do you have questions about Red Deer mortgage rates or Red Deer Home Loan options? Answers are a call or email away from your Friendly Neighbourhood Red Deer Mortgage Broker!

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