Good News / Bad News

How do current long term mortgage interest rates affect your decision to buy real estate property, especially in the red hot market of Alberta, Canada? Well there is good news and bad news, which do you want first?

Okay let's start with the good news: Genworth Financial Canada is now offering a forty year mortgage in order to make homes more affordable to people living in Canada. The market being what it is, is driving the price of homes up and making mortgage payments too high for a lot of people. Although they are making a good living and wisely investing in real estate property by buying their homes, it can be daunting to make ends meet. With this new mortgage they could shave up to $300 per month off of their payments on $300,000 homes.

Now for the bad news: you have to weigh the price of the immediate affordability of the extended terms against the ultimate cost of doing so. The banks are there to make money and you must not forget that. Taking a mortgage on the $300,000 homes out for 15 years and you would pay total interest of $137,559 (based on a 5 years term at 5.3%). That same mortgage over 40 years would end up costing you $431,631 in interest!

Getting in on the real estate property market in Canada today is a great investment and this program may be able to help you. This mortgage offering is saving you money monthly but costing you dearly in the end. You are the only one who can tell whether or not it is for you to pay the price.

Rhonda Hoffman

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