{"id":25840,"date":"2025-05-22T11:11:22","date_gmt":"2025-05-22T18:11:22","guid":{"rendered":"https:\/\/www.roryc.ca\/blog\/?p=25840"},"modified":"2025-05-15T11:06:49","modified_gmt":"2025-05-15T18:06:49","slug":"mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2025\/05\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\/","title":{"rendered":"Mortgage Payments Can Beat Rents for Similar Units as Interest Rates on The Decline"},"content":{"rendered":"<p style=\"text-align: justify;\">With interest rates on a downward slope, it may now be cheaper to buy a condo than to rent a comparable unit in the same community, says one real estate data firm.<\/p>\n<p style=\"text-align: justify;\">The monthly rent in a development can now surpass the mortgage payment for some homes there, a fact that can help industry professionals convince their clients to transact, says Zonda Urban.<\/p>\n<p style=\"text-align: justify;\">Jon Bennest, the company\u2019s Vancouver-based VP of product development, said that just two years ago, market conditions were such that buying was almost double the cost of renting.<\/p>\n<p style=\"text-align: justify;\">But now, due to where prices and mortgage rates currently sit, buying can cost slightly less per month, assuming one can cough up the down payment and strata fees.<\/p>\n<p style=\"text-align: justify;\">\u201cWe\u2019re looking at two different scenarios in two years where your mortgage payments versus rent was double and now is the same,\u201d he said during a May 14 presentation at the Vancouver Marriott Pinnacle Downtown Hotel.<\/p>\n<p style=\"text-align: justify;\">\u201cThis might be a good time to kind of consider, if you can get that down payment, it\u2019s something to kind of talk about.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cIt could even get to a point where your mortgage payments might be lower than what a comparable rental is,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">Bennest gave the example of the City of Lougheed development by Shape Properties Corp. in the Burquitlam area.<\/p>\n<p style=\"text-align: justify;\">In 2023, the average price per square foot was $1,185, the average price was $938,520 and the best five-year fixed rate was 5.49%. Assuming a 25% down payment and a 25-year amortization, this meant the monthly mortgage payment was $4,292, almost double the $2,200 for a comparable rental in Burnaby, he said.<\/p>\n<p style=\"text-align: justify;\">Fast-forward to the present, and the average price per square foot is $1,000, the average price is $792,000 and the best five-year fixed rate is 3.84%. As a result, today\u2019s mortgage payment would be $3,073, which is less than the $3,168 per month for a comparable rental, he said.<\/p>\n<p style=\"text-align: justify;\">With monetary policy on a bumpy road, it\u2019s unclear how long this convergence of mortgages and rents will last.<\/p>\n<p style=\"text-align: justify;\">Over the past 17 years, mortgage rates went from highs in 2008 to lows in 2022. Consequently, the best five-year fixed rate in 2022 was 1%. \u201cCrazy low,\u201d Bennest said.<\/p>\n<p style=\"text-align: justify;\">After climbing back up to around 6%, mortgage rates appear to be in an easing cycle once again. Although the Bank of Canada hit the pause button in April, many economists anticipate further cutting by year\u2019s end amid global economic turmoil.<\/p>\n<p style=\"text-align: justify;\">\u201cInterest rates are on the decline, and I think that\u2019s going to be the most meaningful component of the offering when it comes to convincing people that it\u2019s a good time to buy,\u201d said Bennest.<\/p>\n<p style=\"text-align: justify;\">Still, despite cresting above mortgages in some instances, rents are balancing out as new purpose-built supply comes online, he said.<\/p>\n<p style=\"text-align: justify;\">\u201cWe don\u2019t really see at this point any sufficient demand at projected inventory levels to result in any increase in rents. If anything, our prediction for the next one to two years is a flat-lining or stabilizing of rents.\u201d<\/p>\n<p><a href=\"https:\/\/www.biv.com\/news\/real-estate\/right-now-buying-may-be-cheaper-than-renting-says-real-estate-data-firm-10664314\" target=\"_blank\" rel=\"noopener\">Zonda Urban : Right Now, Buying May Be Cheaper Than Renting<\/a> by Jami Makan | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With interest rates on a downward slope, it may now be cheaper to buy a condo than to rent a comparable unit in the same community, says one real estate &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2025\/05\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,13],"tags":[],"class_list":["post-25840","post","type-post","status-publish","format-standard","hentry","category-mortgage","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mortgage Payments Can Beat Rents for Similar Units as Interest Rates on The Decline &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2025\/05\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Mortgage Payments Can Beat Rents for Similar Units as Interest Rates on The Decline &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"With interest rates on a downward slope, it may now be cheaper to buy a condo than to rent a comparable unit in the same community, says one real estate &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Mortgage Payments Can Beat Rents for Similar Units as Interest Rates on The Decline\",\"datePublished\":\"2025-05-22T18:11:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/\"},\"wordCount\":523,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Mortgage\",\"Real Estate\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2025\\\/05\\\/mortgage-payments-can-beat-rents-for-similar-units-as-interest-rates-on-the-decline\\\/\",\"name\":\"Mortgage Payments Can Beat Rents for Similar Units as Interest Rates on The Decline &#8226; 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