Low Rates in Maple Ridge & Pitt Meadows, BC Helping Buyers Pay Off Their Mortgages at Record Pace
June 28, 2021 | Posted by: Tania Kalinich
Home prices may be astronomical in certain parts of the country, but historically low mortgage rates are allowing borrowers to pay off their mortgages faster than ever.
At today's average rates, 61% of a new homebuyer's very first mortgage payment is going towards principal repayment, according to data from Edge Realty Analytics.
In the early 2000s, that percentage was 26.5%. The change is even more drastic when looking back at the 1990s, where just 11.9% of a homebuyer's first payment went towards paying down the principal, or the 1980s, when that percentage was a minuscule 4.6%.
The result is a much faster build-up of equity over a short period of time, so long as interest rates remain low.
After the first five years of mortgage payments, today's homebuyers borrowing at today's prevailing rates will have paid back more than a fifth of their mortgage (16.5%).
If you are looking for help with money management, contact Maple Ridge & Pitt Meadows, B.C. debt consolidation expert Tania Campfield to review your options.