Brokers
The Power of Home Ownership - The Numbers

Let's just assume you pay $1,600 plus utilities to rent a home.  Although you have no maintenance expenses, you have no access to the potential that home has to appreciate in value over the years.  You can make a good argument for either renting or owning if this is the only variable that you consider.  I would be on the side that a properly maintained home will appreciate more than the cost of maintenance in the long run in a good market.  But aside from that, here is the real tie breaker....

Take a $300,000 home purchase.  With a 5% down payment initial investment at today's 5 year fixed rates of 2.59%, you will have an estimated mortgage and property tax payment of $1,562/month.  Take into account an increased cost of home insurance and you will have a total payment in the range of $1,670/month.

5 years go by in a flash.  In just 5 years, you will pay down your mortgage by $45,000.  That's $45,000 that you put into your net worth.  Your mortgage is at $252,000 in just 5 short years.

Now that you know you can put $45,000 in your pocket, pay special attention to the cheque that you write to your landlord each month. 

Everyone has a unique set of circumstances.  Set up meeting with a mortgage expert so that you can put a plan in place that will put you in a home in the shortest possible time.

My doors are alway open to get you on your way!

Scott Tremblay - Mortgage Broker

iSask Mortgage Brokers

 

March 3, 2017