Roughly half of new condo investors who have a mortgage in the GTA are losing money every month, losing $223 per month in 2022, whereas in 2020, new condo investors on average were cash-flow positive to the tune of $63.



Roughly half of new condo investors who have a mortgage in the GTA are losing money every month, a new report by CIBC Economics & market research from Urbanation suggests.



The changing dynamics are a result of rising interest rates pushing home ownership costs higher, outpacing rent prices. The report says 75% of new condo investors last year in the GTA had a mortgage.



"While the rental market recovered and rents reached new highs in 2022, that growth was more than offset by rising mortgage costs as interest rates soared, resulting in the average investor experiencing negative cash flow," the report said.



On average, new condo investors were losing $223 per month in 2022, whereas in 2020, new condo investors on average were cash-flow positive to the tune of $63.