top of page

Navigating the Market Waves: A Real-Life Tale of Mortgage Evolution

Join us on a captivating journey through the shifting tides of the real estate market, as we unveil

the surprising twists and turns in Ronald and Jackson's quest for their dream home. Explore how their story mirrors the evolving landscape of mortgage affordability, offering valuable insights for prospective buyers in today's dynamic market.

As the cold grip of winter begins to loosen its hold, with March break on the horizon and a palpable sense of warmth creeping into the season, the real estate market is mirroring nature’s transition. Alongside this shift, there’s a noticeable increase in flexibility for buyers concerning cash flow and mortgage qualifications.

I recently analyzed the numbers for a client to demonstrate the evolving landscape of affordability in the housing market. Let’s delve into a comparison between what a buyer could afford towards the end of 2023 versus early March 2024.

In December 2023, utilizing a 3-year fixed-rate mortgage at 6.45% over 25 years, compared to today’s 3-year fixed-rate mortgage at 5.19% over the same period, we witnessed a significant change in affordability. For privacy reasons, let's refer to these clients as Ronald and Jackson.

For those who know me, that is my 12-year-old Labrador and 7-year-old son. Neither of these two rascals could qualify for a mortgage in either of these markets. I digress.

High-level details remain the same in both December 2023 & March 2024

  • Down payment: $100,000 (saved over time)

  • Ronald’s Income: $70,000 (salary)

  • Jackson’s Income: $63,000 (2-year average hourly)

  • No debts

  • Slam dunk credit

December 2023:

Their budget, inclusive of property taxes, heating costs, and default insurance, allowed for a purchase price of $567,000 with a mortgage balance of $485,680 and a monthly payment of $3,238.50.

March 2024:

Their budget, inclusive of property taxes, heating costs, and default insurance, would allow for a purchase price of $620,000 with a mortgage balance of $540,800.00 and a monthly payment of $3,207.07.

Mortgage Details

December 2023

March 2024

Subject Property Value



Mortgage Amount



Insurance Premium Amount



Requested Loan Amount






Payment Frequency



Comparing the two scenarios, today's buyers could afford approximately $53,000 more in the purchase price, with a lower monthly payment of $34.43 and a larger mortgage balance due to decreased fixed-rate interest.

This analysis underscores the fluidity of the market and challenges the notion of a "perfect" time to buy. While December may not have been a bad time to buy, today’s market offers the potential for higher affordability and increased mortgage balances with lower payments. Beyond being a good news story for my son and dog in their homeownership journey it is also very good news to anyone who felt squeezed out of the market over the Christmas holidays or perhaps was declined by their lender. If you did a pre-approval in December now is the time to re-engage your mortgage professional of choice as your buying power may have changed significantly.

It’s essential to note that this example serves to illustrate market trends and should not be construed as financial advice or a pre-approval. Please note these are actual rates, incomes and clients who bought homes. All details are not blanket quotes all rates and terms are subject to change. If you’re considering purchasing a home, I invite you to reach out. Let’s discuss your options, navigate market trends, and find solutions tailored to your needs. Your dream home may be closer than you think.

Emily Miszk, Mortgage Broker at BRX Mortgage


bottom of page