Today we are going to talk about buying a home in March 2022 vs September 2022.
How would it impact a buyer with the difference in interest rate from March to September and with a 15% price reduction.
In March, say you bought a home for $1,800,000, with 20% down, which is $360,000. We are left with a mortgage amount of $1,440,000. At that time the fixed interest rate was 3.64% so your monthly payment would have been $6,567.
Now fast forward to September where the rates & prices have changed. The same house can now be bought at $1,530,000. With 20% down, which is $306,000, the mortgage amount is $1,224,000. And with a 5.20% variable rate, your payment would be $6,679.
The advantage of buying in today’s real estate market:
- you are buying a home for $270,000 less then in March,
- down payment is lower and the mortgage amount is lower,
- your payment is practically the same with a marginal difference of $100,
- when the interest rates go down in the future, because you got the variable rate, your payment would substantially go down.
There are opportunities in this market that you can take advantage of. Give us a call to discuss how you can turn the current market situation to your advantage.
Want to know more about buying or selling in our current market? Give us a call:
PJ @ 604-725-1258 | Razaik @ 604-537-8447
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