RE/MAX of Nanaimo
Your Nanaimo Real Estate Headquarters
"All offices independently owned and operated"

Nanaimo Mortgage Calculator & Information

If you are looking to buy your first home or invest in real estate in Nanaimo use this tool to help you analyze you mortgage payments.
(see Buyers page for more tools and current interest rates)

Disclaimer: This mortgage calculator is for demonstration purposes only.
Doug Belcher and RE/MAX does not guarantee that all mortgage calculations are accurate.
Always consult a professional financial advisor before making personal financial decisions.

To use, enter values for the Loan Amount, Number of Months for Loan, and the Interest Rate (e.g. 7.25). Then click the Calculate button.

	Data Entry
Mortgage Amount
Mortgage Length in Months
Interest Rate
Monthly Mortgage Payment	Calculated
Clicking the Reset button will clear entered values.

Enter only numeric values (no commas)
Using decimal points where needed. Non-numeric values will cause errors.

Nanaimo Mortgage Brokers
Micasa Mortgage Corporation	7-1611 Bowen Road	250-716-0616
Invis		250-754-7775
Mid-Island Mortgage & Savings Ltd	12-327 Prideaux Street	250-753-2242
Essex and Kent	#8 - 2520 Bowen Road	250-756-7744

Is a Variable Rate Mortgage right for you?

(NC)—When it comes to buying or owning your home, deciding on whether to go with a fixed rate or a variable rate mortgage is probably one of the most difficult decisions you'll have to make. If you are currently faced with this dilemma, how do you know what's right for you?

A variable rate mortgage is a mortgage with an interest rate that changes with the prevailing market prime rate during the mortgage term. The portion of your payment that goes toward the principal may increase or decrease as the interest rate changes, but your regular payment will typically stay the same. A fixed rate mortgage is one where your interest rate remains the same for the duration of the term of your mortgage.

Historically, variable rate mortgages have generally offered lower interest rates than fixed rate mortgages. There is strong evidence that variable rate mortgages come out ahead in terms of savings for the mortgage holder, yet many still shy away from these products for fear that their monthly payments may change. This is not always the case. Take for example the CIBC Better Than Prime Mortgage. With this variable rate mortgage, your monthly payments remain the same even if the prime-lending rate fluctuates. This will help you budget your monthly expenses more effectively while capitalizing on lower interest rates.

The chart compares a variable rate product such as the CIBC Better Than Prime mortgage rate against a typical five-year fixed rate mortgage over the period of February 1, 1996 to February 1, 2005. As you'll see, over this period the variable rate mortgage has been lower than the fixed.

For this reason, over the long-term there is a greater possibility of variable rate mortgage holders coming out ahead versus those who hold a fixed rate mortgage. To illustrate, let's use a $140,000 mortgage amortized over 25 years and compare the monthly payments of the two types of mortgages: a five-year closed fixed rate mortgage at 5.90% and a variable rate mortgage such as the CIBC Better Than Prime Mortgage which currently offers a rate of 3.49% for the first nine months and 4.25% for the remainder of your term (APR 4.13% for a five-year term as at September 8, 2005, subject to change). Even if prime lending rates increased by 0.50% per year over a five-year period, you could save as much as $4,759 at the end of your five-year term with the CIBC Better Than Prime mortgage.

Like with any major decision, selecting between a variable and fixed rate mortgage requires you to understand the facts along with your tolerance for perceived risk and confidence about the future. Simply ruling out variable rate mortgages before careful consideration may be putting your hard earned money at risk.

More information regarding variable rate mortgages are available from your local CIBC branch, by calling 1 800 465-CIBC (2422) or visiting the CIBC web site at www.cibc.com

- News Canada

RE/MAX OF Nanaimo

Douglas Belcher, Assoc. Deg Comm, ABR, E-Pro, Nanaimo Real Estate, RE/MAX of Nanaimo
Your Nanaimo REALTOR®

I make myself accessible to all my clients. Choose me as your REALTORS ® and you can call me directly.
250-619-6012 (cellular), 250-751-1223 (office) (ask to have me paged) , 250-753-6013 (Home)
#1-5140 Metral Drive, Nanaimo, B.C. Canada V9T 2K8
doug@dougbelcher.com

Helping clients buy and sell homes in the Nanaimo area including Parksville, Qualicum, Lantzville and Ladysmith.
Ask me about new lots, homes, condos or new townhouses in Nanaimo. Ask me about having a new custom home built for you!