Interview Reg Sukhu With No Obligation
Robin Sukhu is a real estate agent at Re/Max 2000 Realty Inc. He has 23 years’ experience in the Toronto Market
OWNING A HOME
Are things gloomy or is the sun really shining?
If you had purchased a home for $350,000 in 2006, with the average 5-yr. fixed term mortgage posted interest rate at the time of 6.9% and a 5% down payment, you would have made a monthly mortgage payment of $2,371.87, unless you qualified for the 1% Bank discount and paid around $2,185.86 a month.
As you know, the stock market went into major correction mode and the global economy cooled off. Not surprisingly, our real estate market followed the correction trend by reducing home values some 8 – 10% and returning them to near 2006 sale prices.
The best deals are to be had in the midst of this recession when people are uncertain and afraid. Not only are you getting better deals, you are also getting lower interest rates with lower monthly payments.
Today, if you purchase a home for $350,000, with a 5% down payment and discounted mortgage rates freely offered at their lowest rates in 50 years, your monthly mortgage payment at 4.32% is $1,856.87 (a month ago, the same rate was 3.65%), a savings of $325 - 500 a month compared to a 2006 rates.
Take advantage of these times and seize the opportunity to finally get that home you’ve been waiting for. The economy will recover. The real estate market will recover and, in the long term, home sale prices will rise again.
© 2009 Reg and Robin Sukhu