Historic Low Mortgage Rates & Decreasing Home Values Equals Major Home Buying Opportunity

Purchasing a Home

Whether you are a first time home buyer or an experienced real estate investor, you are in the middle of one of the most unique real estate buying opportunities that has ever presented itself.

Mortgage interest rates are at an all time low at the same time that real estate prices have just dropped by 20-35% depending on the market you are in and the type of property you are looking at. To make things even better, in most markets rental incomes are still higher than what the mortgage payment would be, allowing for a positive monthly cash flow.

If you are a new home buyer and looking at a mortgage in the $300,000 range your monthly payment would only be $1296 using a 3.85% 5 year fixed interest rate and a 35 year amortization and the total income needed to qualify for the mortgage would only be in the $42000+ range depending on how much other debt payments you may have to make each month.

This allows most couples or even singles to finally get into the home buying market that they may have backed away from as the market rose sharply over the past 3 years. And with real estate prices poised to make a rebound, now may be the time to take a serious look at making a home purchase.

If you are an investor, the current low rates make it easier to achieve a positive monthly cash flow on properties particularly when you also take advantage of a 35 year amortization. I have just purchased a townhouse in Edmonton that has dropped a third of its value in the past year at a bargain basement price and am close to closing on a similar property in Calgary.

Ask your mortgage broker for a more detailed analysis and arrange to get a mortgage approval to ensure you are ready to speak to a realtor and start your search.

Happy hunting!