Interest on some mortgages in 2022 up 250% from the previous year: RateHub.ca
BNN Bloomberg
A homebuyer in 2022 could be paying around 250 per cent more in interest during the first year of their mortgage when compared to a buyer in 2021, according to an analysis conducted by Ratehub.ca.
In October 2021, a homebuyer would have paid $12,310 in interest during the first year of their mortgage, according to an emailed statement from Ratehub.ca. In this scenario, the buyer has a $600,000 mortgage with a five-year fixed mortgage rate of 2.09 per cent and an amortization period of 25 years.
According to the statement, a buyer in October 2022 would pay $30,819 in interest during the first year of their mortgage. This scenario assumes a $600,000 mortgage with a five-year fixed rate of 5.24 per cent and an amortization period of 25 years.
“A homebuyer will now be paying 250 per cent more in interest in the first year of their mortgage alone. It is unsurprising that this has turned off many potential homebuyers in 2022,” James Laird, the co-chief executive officer of Ratehub.ca and president of CanWise Mortgage Lender, said in the emailed statement.
