Quote:
Originally Posted by Yakbutter
Putting down 5% o a 400k mortgage sounds asinine. So interest rates go up 1-2% and your mortgage goes up $500 a month...
I'm young and rent atm. My plan is to rent cheap (600-700$) a month, and keep saving until I can make a substantial down payment. Something like 40% down.
I don't really see the point of taking on a massive mortgage, when the bank interest, property taxes, CMHC insurance, house insurance and utilities are almost double what it costs to rent. I guess it would make sense if you have renters...but...ew.
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I believe there is a bit of a difference between being paying 5% down and only being able to afford 5% down. I'm under the impression that most posters have enough saved up that they can afford far more than 5%. For instance, you could have enough for 40% down. Do you do that and live in an empty house? I presume you would put 35% down and spend 5% on furniture and other necessary things.
Personally, I think lower down is fine, but to make sure you maintain prudent fiscal habits on owning a home with such low down, I would opt for a more aggressive repayment plan.