When buyers ask if it’s better to wait for lower interest rates or buy now, the answer isn’t always obvious. But when you factor in CMHC mortgage insurance, the numbers often tell a clear story.

Let’s look at a real example:

???? Scenario 1 – Buy Now

• Home Price: $500,000

• Down Payment (5%): $25,000

• Base Mortgage: $475,000

• CMHC Premium (4%): $19,000 (rolled into mortgage)

• Total Mortgage: $494,000

• Interest Rate: 4.68% (25 years)

• Monthly Payment: $2,797

• Total Cost Over 25 Years: $838,958

???? Scenario 2 – Wait, Rates Drop but Prices Rise

• Home Price: $525,000

• Down Payment (5%): $26,250

• Base Mortgage: $498,750

• CMHC Premium (4%): $19,950 (rolled into mortgage)

• Total Mortgage: $518,700

• Interest Rate: 4.43% (25 years, 0.25% lower)

• Monthly Payment: $2,863

• Total Cost Over 25 Years: $858,760

???? The Big Takeaway

Even though the interest rate is lower in Scenario 2, the higher price and CMHC premium mean:

• Monthly payments are $67 higher

• The total cost over 25 years is $19,801 more

• You still need a bigger down payment and take on a larger loan

✅ What This Means for Buyers

Waiting for the “perfect” time often costs more. With CMHC factored in, buying now may protect you from rising prices and extra insurance costs. If you’re ready, acting sooner can put you on the path to equity faster — and save you thousands over the life of your mortgage.

???? Interest Rates Could Rise Again

• Even if rates drop short-term, the market can shift quickly.

• A small increase (0.25%–0.5%) in rates can add tens of thousands of dollars over the life of a mortgage.

???? Home Prices May Climb

• If demand increases (e.g., after a rate cut), prices often rise.

• Waiting could mean buying the same home later for a higher price, negating savings from a lower rate.

???? Low Inventory & Competition

• Inventory in Oxford County and surrounding areas isn’t keeping up with demand.

• Waiting may put buyers into a more competitive “sellers’ market” — multiple offers, bidding wars, fewer conditions.

???? Missed Equity Growth

• Buying sooner means starting to build equity now instead of renting or sitting on the sidelines.

• Delaying even 6–12 months could mean losing out on tens of thousands in appreciation.

???? The “Perfect Home” May Not Wait

• The right home in the right location doesn’t always come along twice.

• Waiting can mean missing out on the home that truly fits their family and lifestyle.

⚖️ Stability vs. Uncertainty

• Buying now offers certainty — locked-in payments, security of ownership.

• Waiting leaves them exposed to changes in the market, economy, or personal circumstances.

???? Pro tip for you as a buyer; ask yourself the following question.

“What are you hoping will change by waiting?”