Save over $65,000 on your mortgage with RateSupermarket.ca’s 3 Simple Steps
TORONTO, September 30, 2011 – If you REALLY want to save money, forget about scanning the discount flyers and bringing your lunch to work, just take a look at your mortgage to get the biggest bang for your buck, says RateSupermarket.ca, Canada’s go-to-website for comparing mortgage rates.
In three simple steps homeowners with a $300,000 mortgage can save $65,541 over 25 years. It’s all laid out in this handy infographic:
It works like this:
Step 1: Shop before you sign.
After looking at over a year of data, RateSupermarket.ca found that the mortgage rates listed on their site from September 2010 to August 2011 were 72 basis points (0.72%) lower than the average big 5 banks’ discounted rates. The banks’ average discounted 5-year fixed mortgage rate was 4.24% versus RateSupermarket.ca’s 3.52% – which adds up to a total interest savings of $34,907. Bottom line – if you shop around, you’ll get a better deal.
Step 2: Adjust your payment schedule.
Abandon the typical monthly mortgage payment schedule for bi-weekly rapid payments and you’ll save a whooping $19,887 in interest. Bi weekly rapid payments let you pay half of your monthly payment every other week so you end up making an extra payment each year.
Step 3: Make regular payments.
If you put down even $1,000 each year against your mortgage, you’ll save yourself a totally of $10,747 in interest. That’s only $83.50 per month (or 17 lattes!).
“When people think about saving money, they tend to think about clipping coupons, giving up coffee shops or opening a high interest savings account,” says Kelvin Mangaroo, President of RateSupermarket.ca. “But the really big savings is looking at your biggest debt, and making sure you pay the least amount of interest over the course of your mortgage. These 3 steps help you do just that.”
P.S. Don’t have a $300,000 mortgage? Well, the savings available for lower mortgage values is nothing to ignore. Take a look:
|Mortgage Value||Interest Saved *||Total Interest saved with RateSupermarket.ca’s 3 easy steps|
|Step 1||Step 2||Step 3|
* Comparison using the average top 5 banks’ discounted 5 year fixed rate from Sept 2010 to Aug 2011 for a mortgage amortized over 25 years and paid monthly. In all cases assume the interest rate remains constant over the course of the mortgage.
About RateSupermarket.ca (http://www.ratesupermarket.ca)
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May 2008, their easy to use comparison engines provide much needed transparency into the Canadian financial market and allow visitors to quickly find the best rates. Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates on the go with their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.