[QUOTE=Slava;2674296]
Quote:
Originally Posted by AFireInside
Not saying that you're lying or anything, but do you have a link for this? Everything I've seen says that in Canada these kinds of mortgages make up a small amount of the borrowing.
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Closest thing I can think of would be this - though not exactly perfect (and I didn't make the claim.)
http://2.bp.blogspot.com/_0YOsyi5WbL...quity+5%25.Bmp
I'm assuming some people are buying a larger second home (and selling the first) with some substantial dollars 20-50% maybe? If the average is kicking at 5-7% either such individuals they are not buying at all (obviously not) or there are a lot of low downpayments offsetting to more than bring the average down that much - mathematically speaking.
Not sure if this is proof of zero percent down but certainly lower and lower downpayments over time perhaps? Not sure - haven't completely thought it through.
EDIT: Upon further thinking on that graph, that's ridiculous. Average downpayments on a home went from 45% to 6% on average? Heck, that's not even median. How many 5% (or less as per previous posts) do you need to bring the average down to 6% if there is the random dude buying a house outright in cash the odd time? Or the very typical family selling their home to buy a larger one with a substantial payment of say 25% equity after selling their first home. That seems like a lot of low downpayments for a whole lot of borrowing . . . unless I'm reading those numbers wrong.
It wouldn't be so bad I guess if that money was diverted into savings I guess, but the consumer debt numbers and savings rates would suggest that's not the case at all.
Am I reading this trend incorrectly?