Yesterday we released a Christmas mortgage rate special, you can find all the details and the rate table here.
If you have plans to change your mortgage before year end, you have to read this, because this special is for you!
Lets Do The Math
How significant is this "Christmas Special" anyway? I figured why not compare our special 5 yr rate against each of the major 5 banks discount rate as posted on their site. Here is what I have come up with.
First lets set the controls, so we are comparing apples to apples. The average home price in Canada is currently $391,820. Using a 20% equity or downpayment, the total mortgage amount would be $313,456. Lets compare 5 yr fixed rates with a 25 yr amortization.
At First Foundation, we are offering a 5 yr fixed rate of 3.29%, making the payments on a mortgage amount of $313,456, $1,530.45/mth.
- RBC 3.79% $1,613.35/mth
- BMO 3.79% $1,613.35/mth
- TD 3.79% $1,613.35/mth
- CIBC 3.79% $1,613.35/mth
- Scotia 3.59% 1,579.82/mth
- Tangerine (Formerly ING Direct) 4.09% $1,664.17
Over the 5 year term (60 months), you would save the following compared to the banks.
- $4,974.00 Compared to RBC, BMO, TD & CIBC
- $2,962.20 Compared to Scotiabank
- $8,023.20 Compared to Tangerine (Formerly ING Direct)
All of these figures are accurate as of December 3rd 2013, however you can check out the special interest rate page for a link to each of the banks rate pages.
You know that $4,974.00 would look great in your savings account!
If you are making changes to your mortgage this December, you should seriously think about contacting us to see how much we can save you!