Was It Better To Purchase A Higher Priced Property
With A Lower Interest Rate Or Is It Better To Purchase That Same

Property At A Lower Price With A Higher Interest Rate?

Let's jump into an example right away!
February
Average Sale Price in the GTA - $1.33m
Average Interest Rate - 1.3%
20% Downpayment
Estimated Mortgage Amount - $4,100
Mortgage Amount - $1,064,000
Today
Average Sale Price in the GTA - $1.09m
Average Interest Rate - 5.5%
20% Downpayment
Estimated Mortgage Amount - $5,300
Mortgage Amount - $872,000

That puts us at a difference of $1200/month if you purchase your home with a higher interest rate today and the rates don't ever move from where they are now.

Well, you and I can both agree that the rates will not remain where they are and even though they will not come back down to the low 1% like we seen during the pandemic, they will come back down to more normal levels between 3-4%.

Once those rates come back down your mortgage amount will be roughly the same as it would have been if you bought earlier on in the year...However you would owe the bank roughly $200,000 less on your mortgage!