Dereck Landry, AMP
Mortgage Broker
Ph:519-208-4145
TF:1-844-717-1212
Email
News and Education
Better Rates! Better Service!
New mortgage rules start January 1, 2018, which may unfortunately affect your ability to use your home equity to
consolidate your high-interest debt into a new or existing mortgage. This is a great option if you are in need of extra cash flow, want to pay down your debt faster, and save potentially thousands of dollars in interest. Act now if you want to realize these benefits:
Consider the following example – existing mortgage, car loan and credit cards total $225,000. Roll all that debt into a new $233,000 mortgage (including a fee to break the existing mortgage) and just look at the payoff:
| Monthly Payments | |||
| Total Debt |
Current | New | |
| Mortgage | $175,000 | $873 | $1,612 |
| Car Loan | $25,000 | $517 | $0 |
| All Credit Cards | $25,000 | $650 | $0 |
| TOTAL | $225,000 | $2,040 | $1,162 |
| That's $878 less each month! |
|||
If you put $500 of your monthly savings back into your mortgage payment, you’ll reduce your amortization from 25 years to 15. Or you could invest in RRSPs or RESPs and reap some tax benefits. The choice is yours.
To find out how you can lower your debt, boost your monthly cashflow and be mortgage-free quicker, before the new rules come into effect, contact me today.
| New rules also affect your purchasing power Mortgage qualifying for purchases with 20% down |
Household Income | Purchasing Power TODAY | Purchasing Power JAN 1, 2018 |
| $40,000 | $273,084 | $222,882 | |
| $60,000 | $409,626 | $334,323 | |
| $100,000 | $682,710 | $557,206 | |
| $150,000 | $1,024,065 | $835,809 | |
| $200,000 | $1,365,420 | $1,114,411 | |
| For illustration purposes only. Based on 25 yr amortization, 20% down purchases, 5 yr term, qualifying rate 3.29% today and 5.29% January 2018. Does not include property taxes, heat or condo fees. OAC. |
|||
