The cost of almost everything has risen recently, and new homebuyers are now bearing the additional burden of higher mortgage costs.

While this was expected following the Bank of Canada raising the benchmark interest rate, the actual dollar amount paid by those who recently purchased a home is astonishing.

According to an analysis by Ben Rabidoux, head of North Cove Advisors and Edge Realty Analytics, new monthly mortgage payments on a typical home have increased by $800 between October and April.

Rabidoux said, "What we have seen in the past six months is a massive increase in home prices, almost across the country, but particularly in Southern Ontario and the mainland."

"Recently, we have seen a very significant rise in mortgage rates. When you kind of look at what the monthly payment would be to buy a new home each month and take on that mortgage, this number has increased nationally by about $800 per month in the past six months."

To put that in context, Rabidoux said this is the largest increase in new mortgage costs in three decades.

Rabidoux said: "I wouldn't say I'm surprised by that. We know the Bank of Canada is behind this when it comes to inflation, and they are now trying to catch up. Part of that is they are trying to tighten monetary policy, and this has a very clear impact on the cost of credit. I wouldn't say it's a surprise. Maybe the surprise at this stage is how well housing has held up despite this staggering deterioration in affordability, but it isn't clear to me that this will last."

Housing prices have begun to decline, but not significantly. Rabidoux wonders how long the market will continue this trend before we actually see it starting to happen, especially in Southern Ontario and parts of British Columbia.

Rabidoux said, "It's really hard to imagine this can be resolved by anything other than a price decline in the near term, unless the Bank of Canada really reverses its high interest rate policy."

The central bank will announce its next policy next month, and it is widely expected to raise the key interest rate again as it tries to curb rising inflation.

Edited by: Dima Abu Khair