Are you thinking about buying a home in Halton or Hamilton, Ontario? With recent increases in mortgage interest rates, you may be wondering if now is the right time to make a move. But despite the higher interest rates, there’s some good news for potential homebuyers: home prices have gone down, meaning you can now buy the same house for less money with similar monthly payments and be much further ahead in the long run.
Let’s take a closer look at the numbers. If you wait for interest rates to go down, you may miss out on lower home prices and end up paying more in the long run. On the other hand, if you buy now, you could take advantage of the lower home prices and secure a similar monthly payment as you would with lower interest rates.
For example, let’s say you’re considering buying a home in Halton or Hamilton. In May 2022, the purchase price for a home was $1,200,000, with a down payment of $250,000 and a total mortgage of $950,000 at an interest rate of 5.24%. This resulted in a monthly payment of $3,965.46 and a mortgage balance of $843,406.46 at maturity.
However, if you were to buy the same home in January 2023, you could purchase it for just $950,000 with a down payment of $250,000 and a total mortgage of $700,000 at an interest rate of 2.94%. This would result in a lower monthly payment of $3,836.73 and a lower mortgage balance of $644,457.53 at maturity.
As you can see, buying now could save you thousands of dollars in the long run, even with higher interest rates. And with home prices expected to rise in the future, now may be the perfect time to make a move.
And don’t forget to download my mortgage app, which can help you stay on top of your mortgage payments and manage your finances more effectively. It’s a convenient and user-friendly tool that can make the homebuying process easier and more streamlined.
If you’re considering buying a home in Halton or Hamilton, contact me today for a consultation and I’ll help you find the perfect home that fits your budget and lifestyle.
