Quote:
Originally Posted by pylon
I disagree.
With mortgages at all time lows, and 5 year fixed rates of 2.99% all over the place, why not borrow every nickel you can, and invest instead.
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And what happens when that 5 years is up and that interest rate has gone up 1.5-2 points? Chances are the buyer who only scrapped together 5% is going to be struggling hard. Not everybody is doing it as a savy investment...most people just want a home to live in.
I'm not saying you shouldn't buy a home...I'm just saying you should buy a home you can afford, and afford with some cushion. If you have 40k down, get the 400k starter home, not the 800k dream house.
I just went through a laughably hard mortgage approval process (forget down payment, try being self-employed AND having all your credit history be in another country), so I know unreasonable the process can be. But having said that, I'm glad Canada is not going down the "no credit no problem" route that happened in the US.