How Does 0.1% Make a Difference on Mortgage Rates

A common comment we hear is “does 0.1% really make a difference in what I pay on my mortgage?” The answer is an unequivocal “YES”. A great way to achieve long-term financial prosperity is by understanding the benefits of the right mortgage interest rate at purchase, and taking the time to shop around to ensure you’re getting the best mortgage rate possible. What many Edmonton homeowners tend to be unaware of is that often times, the mortgage rate your bank initially offers isn’t the only or necessarily the best interest rate available. That’s where Dominion Mortgage Pros can help.

What’s the difference between 0.1%, 0.2% and 0.3% on your mortgage interest rate?

Many Edmonton homeowners are unaware of the impact small changes in their mortgage interest rates can make. It may not seem like a drastic difference in numbers, but that 0.1-0.3% difference can put thousands of dollars back in your pocket in the long-run. Let’s use an example to demonstrate.

Let’s say you were able to save 0.3% at the time of purchase (say, you get a 2.3% for 5 years, instead of a 2.6%) as well as the four renewals over a 25-year term. If we use a mortgage balance of $300,000, the total interest savings ends up being approximately $11,400 over 25 years. That’s well over $400/year in savings. That’s a lot of money. That’s a lot of reasons to get the best mortgage rate possible.

How can our Dominion Lending Mortgage Brokers help?

The job of our experienced mortgage brokers is to find the best possible mortgage interest rate for Edmonton homeowners. Despite the initial rate you may have been given, a mortgage broker can often find a more suitable rate, saving you thousands of dollars in the long-run. The best part about receiving help from a mortgage broker is that we get paid by the lenders, so our services come at no charge to you. Don’t settle for less when it comes to your interest rate. Let’s put your hard-earned money back in your pocket.  Contact our Edmonton office to discover how Dominion Mortgage Brokers can help you find the best interest rate available.

 

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