Posted On Apr 11, 2024

Buy Now:

  • $750K Purchase price

  • 5.2% interest rate

  • $150,000 Down Payment (20%)

  • Mortgage Size:  $600,000

  • Mortgage Payment:  $3275/mnth

  • Interest Paid (over 30yrs): $148,541

 

Wait 1 year to Buy:

  • $825K Purchase price (projected due to pent-up market demand)

  • 4.5% interest rate (assumed based on anticipated Bank of Canada rate reductions)

  • $165,000 Down Payment (20%)

  • Mortgage Size:  $660,000

  • Mortgage Payment:  $3328/mnth

  • Interest Paid (over 30 yrs): $140,931

 

In this example, if you WAIT for 1 year you will save a projected $7610 in interest over the course of 30 years

 

But…

  • You will need to save for a $15,000 larger down payment if you wait

  • You will need to continue to make rental payments (if you are currently renting) @ ~$2600 x 12 = $31,200

 

Conclusion... 

It’s better to get into the market now if you’re ready and not wait for rates to fall!

 

 

 

Let's connect!

Ready to discuss your home ownership goals and a Better Mortgage by Dom?

«