Teresa Vu Sales Representative
RE/MAX West Realty Inc., Brokerage Independently owned and operated
Office: 416-760-0600Mobile: 416-294-4745

About Mortgages, & Other monthly cost

March 21, 2016 - Updated: March 21, 2016

MONTHLY PAYMENTS HOUSING COST GUIDE                        UPDATED:  MARCH 16, 2016

PREPARED BY : TERESA VU, Real Estate Sales Representative at REMAX PLATINUM LIMTED. 

 

The following are a few popular examples of monthly mortgage payments with fixed rates amortized at 25years. This chart is a guide to help you assess your monthly affordability.  

--If you can afford these payments, you may be  more ready to buy than you think.

--Clear your debt by selling your existing home and refinancing a new mortgage.

--Invest on a 2nd property and rent it out.

--Don’t want to leave your home? you can refinance only.

Please consult with a mortgage representative to confirm your qualification.

 

Disclaimer: This is not a mortgage qualifying chart.  The numbers are not exact;  each lender offers different interest rates; each property has its own tax value and utilities varies; you may or may not qualify for 5-10% downpayment and you may or may not qualify for the 2.59% interest rate.

                                                                                                       

In this chart:  tax-heat-hydro are only guessimates; interest rate is fixed 5yrs; amortization at 25years.

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Purchase        10%                Mortgage        Total               Interest          Monthly          Tax,                 Monthly

Price               Down-             Loan                Principle         Rate             Mortgage        Heat,               Total Cost

                        Payment         Insurance*     Borrowed        Amount          Amount          Hydro

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250,000         25,000               5,400              230,400         2.59                1,042                200               1,242

300,000         30,000               6,480              276,480         2.59                1,250                300               1,550

350,000         35,000               7,560              322,560         2.59                1,459                400               1,859

400,000         40,000               8,640              368,640         2.59                1,668                500               2,168

500,000         50,000             10,800              460,800         2.59                2,085                600               2,685

600,000         60,000             12,960              552,960         2.59                2,501                800               3,301

700,000         70,000             15,120              645,120         2.59                2,918                800               3,718

800,000         80,000             17,280              737,280         2.59                3,336                900               4,236

900,000         90,000             19,440              829,440         2.59                3,752              1000               4,752

950,000         95,000             20,520              875,520         2.59                3,961              1000               4,951

 

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*Mortgage loan insurance is typically required by lenders when homebuyers make a down payment

of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment starting at 5%* — with interest rates comparable to those with a 20% down payment.

 

Source / Links /Canada Mortgage and Housing Corporation; Home Buying Tools – Calculators http://www.cmhc-schl.gc.ca/

 

www.TERESAVU.com

 

B – LENDING

The following are a few popular examples of monthly mortgage payments with *B-LENDERS, most of whom are offering 4.99% per year.   *Private or B lending is offered to applicants who usually

do not qualify at the *A-Lending rates.  And minimum required downpayment is usually 20%.  (see asterisk below for definitions)

                                                                                                       

In In this chart:   tax-heat-hydro are only guessimates; interest rate is fixed 1yr; amortization is 25years; note downpayment is 20%; *mortgage insurance is waived by most lenders with 20% downpayment.

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Purchase        20%                Mortgage        Total               Interest          Monthly          Tax,                 Monthly

Price               Down-             Loan                Principle         Rate             Mortgage        Heat,               Total Cost

                        Payment        Insurance*       Borrowed       Amount          Amount          Hydro

_____________________________________________________________________________________________________________________

250,000         50,000             0                      200,000         4.99                1,162                200               1,362

300,000         60,000             0                      240,000         4.99                1,394                300               1,694

350,000         70,000             0                      280,000         4.99                1,627                400               2,027

400,000         80,000             0                      320,000         4.99                1,859                500               2,359

500,000       100,000             0                      400,000         4.99                2,234                600               2,834

600,000       120,000             0                      480,000         4.99                2,789                700               3,489

700,000       140,000             0                      560,000         4.99                3,254                800               4,054

800,000       160,000             0                      640,000         4.99                3,719                900               4,619

900,000       180,000             0                      720,000         4.99                4,183              1000               5,083

950,000       190,000             0                      760,000         4.99                4,416              1000               5,416

Fixed Interest Rates as at March 16, 2016 by Equitable Trust Corporation

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In Canada there are three lending tiers.  The top tier or A lending is offered to clients who can qualify on income and credit and go through banks and other A type lenders.  Other options available to consumers are B and Private lending.  This source of lending represents a large portion of the overall Canadian mortgage lending market.  

B lenders: are institutions offering a variety of lending mortgage products.  Clients that fall into the B category would be missing one of the major components that the banks and other A lenders require such as income or good credit.  They maybe clients who were recently bankrupt.  They maybe clients who are self employed and do not show the income or have good credit to qualify with an A lender. 

Whatever the case these lenders provide a good lending option to the consumer.  They do require a credit score but not as stringent as the A lenders.  This type of lending is usually offered as a short term solution until the client either gets there credit back in line or has the income to qualify through an A lender.  1 to 2 year fixed terms are common with this type of lending.

Private Lending: These lenders are sometimes wealthy individuals who are searching for a better return on their money.  They work with lawyers or set up their own companies to loan out money to consumers.  These lenders lend on equity in the property.  The lender is not concerned with credit or income but will review both to get an overall feel for the applicant.  As with the B lending private lending provides a quick solution.  

 

Looking for an experienced Real Estate Representative? For great advice and great service, contact Teresa Vu.

 

www.TERESAVU.com

 


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Teresa Vu Sales Representative
RE/MAX West Realty Inc., Brokerage Independently owned and operated
2234 Bloor Street West
Toronto, ON   M6S 1N6

Phone: 416-760-0600Mobile: 416-294-4745Fax: 416-760-0900
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