Michelle Lapierre Mortgage Broker

Michelle Lapierre

Mortgage Broker

2nd Floor 10354 68 Ave. NW, Edmonton, Alberta









BLOG / NEWS Updates

Rent vs. Buy - How Low Rates Impact The Math

If you have considered purchasing in the past but the rent vs. buy analysis did not justify purchasing, I encourage you to revisit the math. Lots has happened in the last year, including a big drop in mortgage rates. One year ago interest rates being offered for a mortgage with less than 20% down were around 3.69%. Today that has dropped to 1.69%. So what does that mean for thosecomparing renting vs. buying? These low rates have made home ownership far more attractive in two ways: Lower Payment = Lower Carrying Costs Of Home Ownership When interest rates drop, mortgage payments decrease. This can have a big impact on your overall carrying costs as a homeowner. Example:$300,000 mortgage amortized over 25 years in a 5-year term At 3.69% = $1,528/month At 1.69% = $1,226/month = $302/month drop in mortgage payments The interest rate drop equates to $300 less in monthly carrying costs. Less Interest = More Equity Faster When interest rates drop, more of your mortgage paymentgoes to paying off your principalversus paying off your interest costs. You pay off more of your mortgage and build equity faster. Example:$300,000 mortgage amortized over 25 years in a 5-year term At 3.69% = $51,417 interest paid; $40,266 in principal paid = $259,734 loan balance after 5 years At 1.69% = $23,206 interest paid; $50,349 in principal paid = $249,651 loan balance after 5 years = $10,083 more equity after 5 years The interest rate dropmeans you will pay off over $10,000 more of your mortgage loan in the first 5 years. If you want to look at how you can take advantage of this mortgage market to become a homeowner, give me a call!

Mortgage Rates Below 2% - Don't Miss The Opportunity!

Some days I feel like I work in an alternate universe. I never thought we would see a time where nearly all standard mortgage rates are below 2%. It has created some amazing opportunities you should consider: Renters Save More By Buying- The lower the interest rate, the lower the monthly payment. Andmore of that payment is going toward paying down your principal versus paying interest. So as mortgage rates have dropped to historic lows, the cost of owning a home has dropped. The case for ownership over renting gets stronger as rates drop. Move-Up Buyers-We are all using our homes so differently today. It is not just our home but our office, our gym, and even our school. If you are feeling the crunch on space, it is a great time to look at moving up without a big jump in your mortgage payment. Refinance -Whether it is to drop your monthly costs, to decrease interest costs, or to pay off other debts, it is a great time to revisit your mortgage and see if a new, lower rate can improve your financial picture. Investment Property- Have you always wanted an investment property? Whether it is doing a basement suite or buying your first investment property, these low rates offer a great opportunity to become a landlord with far lower carrying costs. It is much easier to positive cashflow on a property with rates this low! Low Rates: Are They Here To Stay? While the Bank of Canada has expressed their intention to keeptheir benchmark rate low for the long term, that does not mean fixed mortgage rates will stay at todays lows over that same period. Fixed mortgage ratesare tied to the bond market, strength of the economy, and lending risk. If we see a vaccine roll out in 2021 and our economy bounce back quicker than expected, we could see mortgage rates move up. Canadian Mortgage Trends - Optimism Returns to the Markets. Could Fixed Rates Start to Rise? If you want to look at how you can take advantage of this mortgage market, give me a call!


TD Bank Scotia Bank First National MCAP B2B Bank Home Trust
Merix Equitable Bank RFA CMLS ICICI Bank Manulife
Attain Mortgage Haventree Bank HomeEquity Bank Lifecycle Mortgage Sequence Wealth One
Fisgard Capital Optimum RMG Mortgages Bridgewater Marathon Mortgages Vault