Below is a comparison from my #1 mortgage broker referral partner Maureen Young of purchasing
a condo in Vancouver in January 2020 compared to purchasing a condo in June 2020 reflecting both
the change in purchase price and the decreases in both fixed and variable mortgage rates.
Comparison of average, insured (less than 20% down) mortgage rates January 2020 to June 2020
January 2020 5 year fixed 2.74% vs June 2020 5 year fixed 1.99%
January 2020 5 year Variable 2.65% vs June 2020 5 year variable 1.99%
(prime of 3.95% less 1.30%) (prime of 2.45% less .46%)
Summary of purchase price, down payment and mortgage payments
January 2020 vs June 2020
Benchmark price as per REBGV $663,200 $680,800
Down payment - 41,320 - 43,080
Mortgage $621,880 $637,720
Plus mortgage insurance + 24,875 + 25,508
Total Mortgage $646,755 $663,228
Monthly Mortgage Payments January 2020 vs June 2020
5 Year Fixed at 2.74% $2,975 $2,805 5 Year Fixed at 1.99%
5 year Variable at 2.65% $2,945 $2,805 5 Year Variable at 1.99%
Over five years, you would save $10,200 in payments if you took out a 5 year fixed rate mortgage now
compared to January 2020 while a variable rate mortgage today would save you $8,400 over 5 years if
you took it out now compared to January 2020.
The average price of a Vancouver condo increased from January 2020 to July 2020 by 2.65% and at
the same time interest rates significantly decreased resulting in a lower cost of home ownership now
compared to buying in January 2020.
In addition, the Bank Stress Test rate has decreased to 4.94% and it’s the first time the stress test has
been below 5.00%, increasing a buyer’s purchasing power. The stress test is rate buyer’s are
qualified at rather than the interest rate you pay.
There are also other government incentives such as the First Time Home Buyer Incentive and the
RRSP Home Buyers’ Plan that help buyers make the move into home ownership.
If any questions regarding any of the above information, please do not hesitate to reach out to
Maureen Young from Dominion Lending at 604 805 5888
Maureen Young, AMP
Senior Mortgage Advisor
Phone 604 805 5888