Quote:
Originally Posted by AFireInside
5% is a good chuck of change because the prices are high. 6 years ago 10% would be equivalent. Thats crazy.
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Is it really that crazy? If you were in the market for an average priced home in Calgary at $400,000 you'd need a down payment of $40,000 at 10%. A mortgage of $360,000 ($400,000 - 10%) over 25 years would have a monthly payment of ~$2,000. Rent on a 2 or 3 bedroom condo/house depending on location can be had for $1,000 - $1,200 a month. So with that in mind an average person should be able to save up a 10% down payment in 3-4 years based solely on the difference between rent and a mortgage not including additional saving.
So I guess my question is, is 3-4 years an unacceptable length to have to wait to save up a down payment?
Furthermore, to qualify for a mortgage of $360,000 over 25 years at 4% you'll need a combined income of ~$90,000/year. If you're earning that kind of money it really shouldn't be too difficult to save up $40,000 in a few years.
I know all my math was relatively simple and some people will obviously have a harder time saving then others due to factors outside of their control but to simply dismiss 10% as crazy is, well, crazy in my opinion.