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So, you are thinking about buying a new home and there is SO much information out there about financing but it’s very confusing and not simply understood. We are here to help!

The financing world is constantly changing. You have to consider rate holds, to ensure that you capture the best interest rate and can maintain that rate until the completion of your new home. You have to consider what down payment you are able to put down on the purchase and how that directly impacts your monthly mortgage payments. You have to consider all of your other finances to ensure that you can maintain your mortgage payments….. BUT you don’t have to be intimidated!

Let’s make sense of this funny money business. Let’s take for example the Prospect II in Glenvale Phase 2, a brand new home available in Westhills for $499,900. This home is available for purchase now, and you can move in this summer, 2012!

There are some specifics about this home that we need to consider before looking at the numbers. The Prospect II has a mortgage helping two bedroom, legal suite! This is likely to bring in at least $1,000 each month if rented, which will in turn reduce the amount you have to pay towards your monthly mortgage payment.

You need to consider the size of down payment you can afford and the resulting monthly mortgage payment. Using the example of the Prospect II which, again, sells for $499,900, please see below:

Down Payment Percentage Amount of Money Required for Down Payment Monthly Mortgage Payment Monthly Mortgage Payment Less Rental Income
5% $24,995 $2,200.78 $1,200.78
10% $49,990 $2,061.74 $1,061.74
15% $74,985 $1,945.27 $945.27
20% $99,980 $1,795.82 $795.28

*All information above is based on a 3.5%, five year fixed rate.

Those numbers are impressive! You can, after all, afford a home in Victoria! Although most of us might not be capable of putting a down payment of 20% down on a home, even with the minimum 5% down on the Prospect II, once you consider the $1,000 rental income you can receive from the two bedroom, legal suite, your mortgage payments for a BRAND NEW, Westhills home can be as low as $1,200.78!

Should you be interested in this home, contact our Sales Team by telephone at (250) 889-4445 or by email at Sales@WesthillsBC.com. If you are interested in speaking to a mortgage specialist, contact Gail Demontigny by telephone at (250) 388-4475 or by email at MortgagesForYou@Shaw.ca.