Interest Rates are going Up!

Interest rates are still going up!
How does that impact your ability to buy a home?

For every 1% the rate increases, you loose 10% of your purchasing power!!

So if you would have bought a $1,200,000 home last year at 3%, today with a rate of 4.5% it would cost you 15% every month! Or to keep the same payment, you would only be able to buy a home with a price that’s 120,000k less.

Thankfully, house prices tend to be tied to interest rates, because of the interest rate increase, prices of properties have come down about 10-15%.  With the right stratergy,  you’ll be paying the same monthly rate with a better home. That sounds like a win to me.

If you’re thinking about buying a home, let’s connect ASAP because these rates are going to keep rising!

Thinking of Buying, Selling or Investing? Feel free to contact me with any questions about Real Estate!

Tony Sousa
Tony@SousaSells.ca,
416-477-2620

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