Last month (October 2023) I did the first comparison between financing a home in April 2022 VS September 2023. To help shed light on financing a home in our current market, I have decided to continue the comparison.
Below are some comparisons for all dwelling types in the following areas: Hamilton (all areas), Burlington, Brantford & Brant County.
Hamilton (all areas that make up the City Of Hamilton): Increase of $219 / monthly payment, but a savings of $28,925 on a down payment!
| April 2022 | October 2023 | |
| Average Purchase Price: | $965,795 | $821,167 |
| Down Payment: | $193,159 | $164,234 |
| Loan Amount: | $772,636 | $656,933 |
| Interest Rate: | 4.50% | 6.50% |
| Monthly Payment: | $3,896 | $4,115 |
Burlington: Increase of $152/ monthly payment, but a savings of $49,248 on a downpayment!
| April 2022 | October 2023 | |
| Average Purchase Price: | $1,417,577 | $1,171,340 |
| Down Payment: | $283,516 | $234,268 |
| Loan Amount: | $1,134,061 | $937,072 |
| Interest Rate: | 4.50% | 6.50% |
| Monthly Payment: | $5,718 | $5,870 |
Brantford & Brant County: Increase of $99 / monthly payment, but a savings of $29,957 on a downpayment!
| April 2022 | October 2023 | |
| Average Purchase Price: | $869,331 | $719,548 |
| Down Payment: | $173,867 | $143,910 |
| Loan Amount: | $695,464 | $575,638 |
| Interest Rate: | 4.50% | 6.50% |
| Monthly Payment: | $3,507 | $3,606 |
So, what does all of this mean? The hard costs of getting into a home has decreased, which means you need to borrow less money and save a smaller down payment; land transfer taxes are also lower. The only thing that has increased, is the monthly mortgage payment.
Rates will come down at some point, so if you are able to afford the current mortgage payment within your budget, then why not go out house hunting and take advantage of the market? Another benefit of buying in this market is that conditions are back – I’m seeing offers accepted with 5 business days for financing, home inspection and so on. These are all good things to have in any offer when purchasing a home as it protects the buyer.
If you’re concerned about rates, locking in at the current rate a great option and gives you peace of mind for the term of the mortgage.
Give me a call for a mortgage review and we can determine a comfortable monthly mortgage payment that fits your budget. And if you’re ready to start looking, I’m happy to introduce you to some great Realtors.