A report by Zoocasa predicts significant increases in monthly mortgage payments for Hamilton-Burlington homeowners up for renewal in 2023, with an average rise of $879 per month, marking a 32.5% increase. Photo credit: Pexels
A recently released report shows that Hamilton homeowners who are up for mortgage renewal this year will see a rather high increase in monthly payments.
The report was prepared by property technology company and brokerage Zoocasa.
The overview sought to determine how much more Canadian residents in specific cities will end up paying if their mortgage is up for renewal this year.
They analyzed mortgage payments on homes purchased in 2020 and 2018 in order to learn “how much buyers have left to repay, and what their payments may be when they renew.”
For Hamilton-Burlington, the data indicates that homeowners who purchased in 2020 could see an increase of over $800 in monthly mortgage payments.
Hamilton and Burlington are grouped together in the report.
The prepared chart states that the average 2020 home price was $683,000 with the average original monthly mortgage payment $2,703.
If that average Hamilton-Burlington homeowner were to renew their mortgage this year, they would end up seeing their monthly payment rise by $879 to $3,582.
That number represents a 32.5 per cent increase in monthly payments.
Of those who purchased homes in 2020, only homeowners in Greater Vancouver, Greater Toronto, and the Fraser Valley would see higher mortgage payments than those living in Hamilton-Burlington if renewing this year.
Hamilton-Burlington residents who purchased a home in 2018 would see less of a financial shock, but still a decent increase in monthly mortgage payments if renewing.
Zoocasa’s chart indicates that the average home price in 2018 in Hamilton-Burlington was $552,500 with the average original monthly mortgage payment calculated at $2,596.
If that average Hamilton-Burlington homeowner were to renew their mortgage this year, they would end up seeing their monthly payment rise by a more modest $186 to $2,782.
That number represents a 7.2 per cent increase in monthly payments.
For the nearby Niagara Region, those who purchased homes in 2020 and renew this year may see their monthly payment rise by $632 from $1,979 to $2,611.
Meanwhile, those in Niagara who purchased homes in 2018 and renew this year may see their monthly payment increase by $124 from $1,853 to $1,977.
The most affordable monthly payments out of the 20 regions measured in the report are Saint John, New Brunswick following by Moncton, New Brunswick.
Saint John residents who purchased their home in 2020 and renew their mortgage this year may see their monthly payments go from $794 to $1,047 a month.
Meanwhile, Saint John residents who purchased a home in 2018 may see their monthly mortgage payments go from $828 to $883.
The report concludes that “2020 buyers that are up for renewal will likely be impacted by higher rates” country-wide.
“One of the best available rates in September 2020 was 1.64 per cent – renewing now means paying interest at a rate of 5.24 per cent.”
In terms of methodology, home prices were sourced from the Canadian Real Estate Association.
The remaining balance was calculated using the TD mortgage payment calculator, while original and renewed monthly mortgage payments were reportedly calculated using the Realtor.ca mortgage calculator.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
