For a while, prospective buyers have been stalling their decision to purchase real estate due to the fear of higher interest rates. While at first thought this does seem like a good idea. But people aren’t paying attention to is the fact that the home they would end up financing has dropped substantially since our market peaked almost 2 years ago.
Waiting for rates to drop before buying does seem like a good idea at first but not when everyone is planning to do the same. If you were to wait for rates to drop before entering the market, what rate are you waiting for? Is it 2%, 3%, 4% etc? Buyers who focus on their budget and what they can afford to spend per month on a mortgage payment will come out ahead VS. those are waiting for rates to drop. Once we have more buyers in the market shopping and making offers, home prices will increase without warning.
Below are comparisons for all dwelling types in the following areas: Hamilton (all areas), Burlington, Brantford & Brant County. What is being compared is financing a home in April 2022 VS. February 2024.
Hamilton (all areas that make up the City Of Hamilton)
| April 2022 | February 2024 | Am I Saving Money? | |
| Average Purchase Price: | $965,795 | $776,798 | $188,997 – Yes |
| Down Payment: | $193,159 | $155,360 | $37,799 – Yes |
| Loan Amount: | $772,636 | $621,438 | $151,198 – Yes |
| Interest Rate Fixed: | 4.50% | 5.50% | 1.00% Higher |
| Monthly Payment: | $3,896 | $3,504 | $392 – Yes |
Burlington
| April 2022 | February 2024 | Am I Saving Money? | |
| Average Purchase Price: | $1,417,577 | $1,135,036 | $282,541 – Yes |
| Down Payment: | $283,516 | $227,007 | $56,509 – Yes |
| Loan Amount: | $1,134,061 | $908,029 | $226,032 – Yes |
| Interest Rate Fixed: | 4.50% | 5.50% | 1.00% Higher |
| Monthly Payment: | $5,718 | $5,120 | $598 – Yes |
Brantford & Brant County
| April 2022 | February 2024 | Am I Saving Money? | |
| Average Purchase Price: | $869,331 | $659,043 | $210,288 – Yes |
| Down Payment: | $173,867 | $131,809 | $42,058 – Yes |
| Loan Amount: | $695,464 | $527,234 | $168,230 – Yes |
| Interest Rate Fixed: | 4.50% | 5.50% | 1.00% Higher |
| Monthly Payment: | $3,507 | $2,973 | $534 – Yes |
So, what does all of this mean? Based on the average monthly mortgage payment savings for Hamilton, Burlington & Brantford & Brant County, this is like getting $6,096 in free groceries every year for a family of four! That would be like not having to buy groceries for 20 weeks. Just imagine what you could do with all of that extra money.
Give me a call for a mortgage review and we can determine a comfortable monthly mortgage payment that fits your budget, so you can start looking for your new home.