Quote:
Originally Posted by Realtor 1
Hiking the down payment to 10% would be crazy. I think it would kill any recovery we have seen.
For many of my buyers 5% is a good chunk of change. I think 5% is a great number because it shows that you can save but doesnt have to leave you stranded for years in recovery mode.
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I'm not sure I would call it "crazy" per se. But it would certainly speed the process/correction that is already taking place. Given the increasing pace and current record high loads of debt that the bank, BoC, government and media are waxing about - I would suggest the "any recovery" you mention is probably inherently unsustainable.
Quote:
Originally Posted by Patrick
I dont agree it would hurt 1st time buyers. Most people can meet 10% fown based on equity in their 1st home, etc when they sell it.
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Anyhow, back to this as well. I linked this figure before, but I haven't confirmed the numbers. If it is correct, then it is rather insane considering the average would have to include people buying larger homes from their initial "starter" and still not having any decent amount of equity.
http://2.bp.blogspot.com/_0YOsyi5WbL...quity+5%25.Bmp