Sign Up Now

Select Page

We have witnessed three quarter point interest rate increases since July of 2017, with the most recent occurring on January 17, 2018. More increases are expected in 2018. If you own a home or are purchasing a home why does this matter?

The price is not the price

The average home price in London, Ontario is $320,000. What people tend to ignore is that the price you pay for a home is not the actual cost of the home. Assuming a rate of 3.25 per cent over a 25 year amortization period, the cost to finance this house is approximately $475,000. If there was to be an additional quarter point interest rate increase, the cost of the home is now approximately $488,000.

Don’t get burned by a quarter point

That is a lot of money to simply give away because you feel a quarter point here or there can’t mean much. One reason you work with a competent mortgage broker is to shop the market for you and find you the best rate. You owe it to yourself to find the optimal financing solution. Let’s talk.