Quote:
Originally Posted by Canehdianman
I'd expect better information from a realtor.
CMHC fees are much lower if you put down 15% over 5%. About 1.5% lower (so on a 400,000 mortgage it would save you $6,000).
|
It sounds like you would like a realtor to agree with you - my point and belief stands.
I have $10,000 saved up for a down payment today.
I buy a 200k property with 5% down
I pay CMHC fees of roughly 6k
My mortgage is 196k and I start paying today. Perhaps knocking an extra $200 off each payment as I bought something I can easily afford but saving up the DP was the tough part.
OR
I have 10k saved up today,
I rent for the next 3 years while I save up another 30k
My rent costs me 1500 a month - $54,000 over the 3 years I managed to save my remaining 20%
I buy into the market and save my 6k on cmhc fees.
After 3 years from day 1
5% option and I own a property, have paid very little interest and have knocked a good chunk off with my diciplined investing of adding 200 to my payments.
20% option, I just bought a house, owe $160,000 on it but also spent 54k over the last 3 years renting. We are also assuming that prices have not gone up over this 3 year span in which this same 200k property might have really cost me 220 when I was ready to buy.
You tell me who is ahead.