Buying or selling a house? Real estate can be complex and frustrating but Goldhawk.com gets you organized and on top of the market with consumer news, the good guys and honest companies in Real Estate. We’re looking for corporations, agencies, brokers and others you’ll need to make it all go smoothly and securely. Know your Canadian Consumer rights. 

Home buyers underestimate mortgage costs

A large number of Canadians bought homes over the past few months but as many as 45 percent of these homebuyers lack a solid understanding of how much they’ll be paying for their new abodes, according to TransUnion, a company specializing in credit and information management.

TransUnion commissioned GfK Roper Public Affairs & Media to survey consumer perceptions and attitudes about mortgages. Not only did 45 per cent of Canadians surveyed underestimate the lifetime cost of a mortgage, only 20 per cent know the average Canadian homeowner will ultimately pay between 151 to 200 per cent of the original loan amount over the course of a 25-year mortgage.  

This means, by the end of a 25-year term with a traditional fixed-rate mortgage at 6.43 per cent, you’ll actually pay close to 0,000 in interest on top of a 0,000 mortgage, says Tom Reid, Director, Consumer Solutions at TransUnion.ca.  

Home owners can cut that cost by tens of thousands of dollars if they have higher than average credit scores when going to get a home loan. The higher the credit score, the stronger the home buyer’s position is when negotiating for lower mortgage or home equity rates. Mr. Reid advises consumers to review their credit profiles and scores frequently and take steps to maintain or improve credit standings.

For more information, visit www.transunion.ca