While mortgage interest rates may be higher than what we have been used to over the past couple of years, there is still opportunity in our housing market.
The chart below shows the difference in purchasing a home in Kitchener-Waterloo in March 2022 versus purchasing that same property in October 2022.

In Scenario #1 happening in March 2022, the property was purchased for $960,181 with a minimum down payment of $71,018 and a 5 year fixed rate of 2.99%.
Scenario #2 in October 2022 depicts that the same property can be purchased for $763,630, with a minimum down payment of $51,363 and a 5 year fixed rate of 4.99%.
Even with a rate of 2 basis points higher, the buyer is still saving $67 per month on their payments nearly $30,000 over the duration of their 5 year term:
- Down Payment Savings: $19,655.10
- Mortgage Insurance Savings: $7,075.84
- Payment Savings over term: $4,020.00
- Total Savings: $30,750.94
PLUS, this homeowner will have a mortgage balance of $134,734 LESS than Scenario #1 providing more flexibility for refinancing when property values come up again.

Whether you’re in the Kitchener-Waterloo region or elsewhere in Canada, Valko Financial has a mortgage solution for you. Please reach out to our team to learn more!