To compare, a buyer last month who borrowed a similar amount under identical terms would’ve done so under a five-year fixed rate of 5.24%, amounting to $30,819 in interest during the first year of the mortgage.
“It is unsurprising that this has turned off many potential homebuyers in 2022,” said James Laird, co-CEO of Ratehub.
“I have seen year-over-year change in mortgage interest costs quoted as between 10% and 20%,” Laird added. “Both fixed and variable rates have more than doubled over the past year.”
The findings mirrored those of a recent study by Statistics Canada, which reported that mortgage interest costs saw a significant 11.4% annual increase in October – the largest such gain since February 1991 (11.7%).