Real Estate
in Ottawa
with
Dan Coveduck
Sales Representative
Team Realty Ltd.
Brokerage
Independently owned
and operated
Office: 613-667-5555
Toll Free: 1-800-307-1545
in Ottawa
with
Dan Coveduck
Sales Representative
Team Realty Ltd.
Brokerage
Independently owned
and operated
Office: 613-667-5555
Toll Free: 1-800-307-1545
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| Frequentaly Asked Questions |
When a house is stuck in seller's limbo, one way to jump-start the sale is to offer a mortgage buy-down, particularly if high interest rates are an issue. While the amount of money involved is less than a price reduction, the bottom line is often more attractive to buyers.
- Here's how it works:
The seller offers a fixed dollar amount in cash to buy down the mortgage interest. The subsidy could be less for the second year, and even smaller – if it is continued at all – for the third year, but is often a gross dollar figure calculated on a set period, for instance, until the maturity date of the mortgage.- For example:
To “buy down” an interest rate by 2% (say, 7% down to 5%) for a two year period, the interest factor is determined based on the balance of the term, (if the loan was initially for a 2, 3 or 5 year term, as an example), the amortization period (whether it’s a 10, 15, 20 or 25 year mortgage for example). The interest factor (so much per $1,000 of loan value) is then multiplied by the balance of the loan, and an interest rate buy-down is determined. In a very slow market, this is often a valuable technique to use.
Return to Frequentaly Asked Questions
Dan has answers to your questions and more professional tips to make your real estate transaction more pleasurable.
Call or e-mail Dan or click on "Ask Your Own Questions."
Dan can send you information on any Property Listed For Sale on the Multiple Listing Service in the Ottawa area. If you would like him to help you locate a home, please fill out his Information Request Form.
Surfing the Real Estate Board's web site or MLS.CA and found a house that you like but doesn't give you the civic address.
Dan can also help. Just fill out his Would like an address form, please !
Or perhaps you are considering selling your home in the near future, he can also offer you a Complimentary No- Obligation Market Evaluation Form
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