Interest rates across Canada are dropping, creating a mortgage price war among banks. Lenders have begun to offer fixed-rate mortgages at rates as low as 2.84%, and variable rates as low as 2%. Combine these new rates with plenty of homes on the market, and many people are finding it an attractive time to buy their dream home.
Low rates are great, but do you know how much house you can afford? The historical rule of thumb for decades has been that no more than 32% of household pre-tax income should be spent on housing costs. This includes your mortgage, utilities, condo fees and property taxes.
Still not sure how much you can afford? Try using the Mortgage Calculator on my website. You can input various numbers and get an idea of what your payments might be. Have more questions? Contact me at firstname.lastname@example.org and let's talk about buying a new home!