Opportunity Arises to go from Renter to Homeowner – Chilliwack BC

 

As a Chilliwack mortgage broker, we tend to experience similar seasonal changes as our local real estate partners do, with some exceptions. Purchase season will often slow down around Christmas, picking back up in February and continue snowballing until it reaches it’s peak in the early summer weeks; however, this year appears to be drastically different than previous years. Rather than slowing down in mid July – mid August (often prime vacation time), the pace of home buying/selling doesn’t seem to be slowing down anytime soon. Therefore, us being Chilliwack mortgage brokers, we took it upon ourselves to do a little digging and come up with some sort of conclusion as to why this may be.

 

3     things became clear to us:

1)      Home values have decreased as much as 10% since 2018 and as of recent, this decrease in home value has reached as much as 19.49%.

2)      Interest rates have significantly dropped compared to last year as much as 0.90%

3)      The Bank of Canada recently lowered its stress test rate from 5.34% – 5.19%

To some, the change in Chilliwack’s real estate might not seem to be hugely different, to others this change can take someone from a full-time renter to a first-time homeowner.

Below is a comparison to show Chilliwacks new interest rates/housing costs, and how these changes have increased purchasing power for many Canadians.

 

August 2018

Mortgage amount = $500,000

Interest rate (5 year fixed) = 3.79%

Amortization = 30 years

Monthly mortgage payment = $2318.53

 

August 2019

Mortgage amount = $450,000

Interest rate (5 year fixed) = 2.89%

Amortization = 30 years

Monthly mortgage payment = $1866.48

 

That is a $452.05 difference in monthly mortgage payments!

 

 

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