The current mortgage rate environment truly is like Christmas in July for any mortgage shopper!

While the past isn’t always a reflection of what’s to come, following are some certainties you can take to the bank!

5-year fixed mortgage rates over the past 6 years are as follows:

2011: 3.59

2010: 4.49

2009: 3.95

2008: 5.15

2007: 5.74

2006: 5.25

What you need to do with this info:

If you don’t own…

If you’re a first-time homebuyer, get out there and BUY YOUR FIRST HOME.

Even though rates have nowhere to go but up, upon renewal you will have paid off enough of your mortgage that you should not have payment shock, and you will qualify with options maximized at today’s lower rates. If you continue to rent, your landlord has every right to raise your rent in accordance with inflation, and you receive no equity.

Despite what you may have heard, real estate is affordable in BC. There are only small pockets in the premium market that are out of reach for most Canadians. The reality is, if you make $30,000 per year, you can own a condo in over a dozen hot municipalities for a payment that will likely be less than your current rent! The property ladder does not start at the top with a million dollar home – the sooner you start, the faster you can move up the ladder.

If you currently have a have a mortgage…

If you have a mortgage obtained prior to 2011, it’s a good idea to undergo a review to ensure you’re maximizing your mortgage payments. Even if your renewal date is not for another four years, time is money. People paying mortgage interest in the 5% range could potentially take an average of a DECADE OFF their mortgage just by refinancing. I don’t know anyone that could not benefit from taking a decade off their mortgage!

Even if there is a penalty, this would be included in the new mortgage with the net benefits calculated.

If you have debts (including credit cards, lines of credit, loans)…

It’s almost like it never happened! Restructure your mortgage with today’s low rates to include your debts. For the average Canadian who carries $600 a month, if that debt was restructured into a mortgage today, you would save

$500 a month. This example is based on an average $20,000 loan that, according to most credit card statements, would take a consumer longer to pay off than the average mortgage amortization.

If you want certainty with you financial future that you can literally and figuratively take to the bank, contact us!

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm