Very rarely do you find gifted down payments for households that already have saved at least 5% on their own. Gifts are generally to get households to the 5%-mark.
I assume you mean "conventional" mortgages as opposed to traditional, but keep in mind many of those purchases are for people much older than the 35-year old range you eluded to.
What you think is affordable vs. what OSFI think is affordable are two different things. The stress test is at 4.79%, so you need to base your monthly payments at that rate, not the contract rate.
I can assure you most families at the age of 35 do not have 20% down payment. So now you're looking at max 25 year amortization, with insurer guidelines, and a lot of people in this age group still have unsecured debts. Vehicle loans, student loans, credit cards/LOCs, etc.
|