Quote:
Originally Posted by mrkajz44
When I started I didn't go zero down, but got max amortization (I think it was only 35 years at that point). It was a great strategy as I was just starting out. I was allowed to increase my payments by 25% and lump sum per year of 25%, so if I had the money it was easy to put it on the mortgage. However, if my income source dried up suddenly, I could fall back on the teeny tiny payments a 35 year mortgage offered.
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And had even half of buyers approached it this way we would still have the 35-40 year mortgage being offered (perhaps limited to first time buyers only or a max age limit)
Instead of using it as a safety blanket it was often used a a extra allowance on depreciating goods such as cars, electronics, etc.
All in all, I think Canada has stayed ahead of the curve in preventing any major collapse and while more money up front today might not be every buyers dream, knowing that the value of your home is not going to plummet overnight along with the equity due to a collapse in the luxury market should make one feel better.