{"id":30433,"date":"2024-07-10T06:00:00","date_gmt":"2024-07-10T10:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=30433"},"modified":"2024-07-19T10:08:55","modified_gmt":"2024-07-19T14:08:55","slug":"larger-down-payments-impact-on-monthly-mortgage","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/larger-down-payments-impact-on-monthly-mortgage\/","title":{"rendered":"How A Larger Down Payment Will Change Your Monthly Mortgage Payment Across Canada"},"content":{"rendered":"\n

Since the Bank of Canada announced<\/a> it was lowering the overnight lending rate by 25 basis points in June, some fixed rates have finally started to come down. According to Ratehub<\/a>, the average 5-year fixed rate dropped to 4.64% in July – the lowest point in over a year. Despite this, interest rates remain higher than historical averages, and it may take a few more Bank of Canada rate drops before borrowing costs lower more substantially. <\/p>\n\n\n\n

So what can prospective homebuyers do to lower their monthly housing costs? If you have the means and are willing to save for a little bit longer, putting down a larger down payment can significantly lower your monthly mortgage payment. <\/p>\n\n\n\n

To understand how different down payment amounts can affect your monthly mortgage payment, Zoocasa analyzed the average monthly mortgage payment for the average-priced home in 18 cities. For homes priced under $1 million, we calculated the payments based on the minimum down payment, as well as 10%, 15%, and 20% down payments. For cities with average home prices exceeding $1 million, we calculated the monthly mortgage payments using the minimum down payment, along with 25%, 30%, and 35% down payments. <\/p>\n\n\n\n

Average home prices were sourced from the latest report from the Canadian Real Estate Association and monthly mortgage payments were calculated using the realtor.ca<\/a> mortgage affordability calculator, assuming a 25-year amortization and a 5-year fixed rate of 4.64%.<\/p>\n\n\n