5 year term
2.99 % rate
Upfront payment before 3rd year ($30,000, say $10,000per year)
You will save $23,778 of interest payments during the whole loan term in interest!
Compare that with some historical figures...
Average home sold in 1984
$61,929 loan at 13.6% with an upfront payment of $568
5 year term at $568 per month
First month Int $547 Cap $21
Last month $528 Cap $40
Over ten years, bank was paid $58,213 in interest on a $61,929 home purchase!
Average home sold in 1994
$106,478 loan at 9.3% with an upfront payment of $722
5 year term at $722 per month
First month Int $648 Cap $74
Last month $606 Cap $116
Over ten years, bank was paid $59,724 in interest on a $106,478 home purchase!
Same average home sold in 2014
$282, 667$ loan at 4.35 % with an upfront payment of $1,232
5 year term at $1,232 per month
First month Int $812 Cap $420
Over ten years, bank was paid $60,811 in interest on a $282,667 home purchase!
This home that started in 1984 at $61,929 will return to the bank in interest
a grand total of $185,035 over 30 years!
In chess you only get one right move !
Here is a simple way to calculate total debt service plus saving ratio:
(Monthly mortgage payments +property taxes+heating+ 10% of your pay cheque in savings) / Monthly gross income
If your Total Debt Service Ratio (TDSS) is at 35% or less, you're okay to buy!
Mammone Real Estate Agency wants you to feel empowered when you purchase your home, and we've provided some tools to hep you stay on top of your finances, to help conserve your savings and the environment.
We pride ourselves in personalized interactions to suit each individual case, and we know the local Quebec market intimately.
We respond to changes in the market, and we work to make a difference for you, and the planet, by helping our clients make environmentally-sound modifications to their dwellings. The result is a more efficient, healthy and happy family and home.
Mammone Real Estate Agency is a Real Estate permit holder from the OACIQ.
Agence Immobilière Mammone est titulaire d'un permis Agence Immobilière OACIQ.
Good sense in a good investment with Mammone Real Estate Agency
The beauty of real estate is the ability to secure a loan for at least 65 per cent of the cost, leaving the investor to put down only 35 per cent, but allowing them to earn 100 per cent. There are also tax deductions, depreciation, interest deductions and renovation deductions to consider.
Vertoit has over two decades worth of International business experiences, including Japan, Europe, and Canada's west coast. Vertoit brokers only stand to add value to your dealings.
Let us represent you in your next purchase.
Investment New Letter. Print your copy!
Buying a home is an emotional investment. It's the biggest purchase of your life! With so many factors to consider, your finances usually come first. And at Mammone Real Estate Agency, the environment gets equal consideration.
When you invest in greening your home, you will actually save money. You'll pay off your mortgage faster, or put money back in the bank if you rent your home.
Our Clients Respect Us! Call Mammone 514 457 7001
"Real Estate cannot be lost or stolen, nor can it be taken away. Purchased with common sense, paid for in full, and managed with reasonable care, it's the safest investment in the world." Franklin D. Roosevelt
Make your profit at the purchase, and not at the selling. Invest your money in real estate by buying right, and getting the right product at the right price.
Real estate is a secure investment. Market appreciation is the gradual inflation that increases real estate values over time. In the last 50 years, Canadian residential real estate has increased steadily by six percent per year. Over the past 44 years, commercial real estate has increased by seven percent. These average Canadian figures illustrate that real estate generally rises over time.
With the volatile financial markets of recent years, wise investors, pension funds and Real Estate Investment Trusts are looking for alternative vehicles for their wealth. They look to real estate investments offers, market appreciation, earned appreciation, positive cash flow, mortgage reduction and leverage, and most of all tax deductions.
The purchase power of money drops over time, so investing in an appreciating asset is a sound way to maintain and grow your wealth. This is even more pronounced if an investor buys in a down market. And real estate increases in value when it is renovated and upgraded, even in bad times.
Become a wise investor
Positive cash flow is when rental income exceeds all expenses and cash surplus remains at the end of the month. This eventual accumulation of cash will enable the wise investor to buy more properties and eventually achieve financial independence.
The ideal real estate investor always expects cash flow to be tight initially, but as rents rise with inflation and mortgage rates, the property remains the same, and cash flow increases. It's the gap between the rent and the mortgage that increases cash flow.
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