Are you concerned about current mortgage interest rate hike ?
July 15, 2022
*All are getting concerned and anxious about the rate increase. At the same time, property price is going down* What does it mean to all the buyers, see the scenario below:
Example:
Back in January 2022
Average Purchase price of a townhome in GTA: $1,250,000
20% down payment: $250,000
Mortgage amount: $1,000,000
Five years VRM posted rate: 2.45%
Five years VRM Flex floor rate: 1.90%
Five years VRM client rate: 1.90%
AM: 25 years
Monthly payment: $4,190.03
End-of-term mortgage balance: $836,126.52
At Present, in July 2022
Average Purchase price of a townhome in GTA: $1,000,000
20% down payment: $200,000
Mortgage amount: $800,000
Five years VRM posted rate: 4.70%
Five years VRM Flex floor rate: 4.15%
Five years VRM client rate: 4.15%
AM: 25 years
Monthly payment: $4,289.23
End-of-term mortgage balance: $698,794.48
The difference in monthly payment from January 2022 to current: $99.20 (4289.23 less 4190.03)
Savings on the end-of-term mortgage balance: $137,332.04 (836,136.52 less 698,794.48)