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Mortgage Broker News | 19 Apr 2016, 08:15 AM Agree 0
If this advice sounds familiar, it’s probably because it is the same kind many brokers have prided themselves on providing
  • LanceH | 19 Apr 2016, 09:16 AM Agree 0
    Hmmm, save 200k down? I think most of us advise clients per their circumstance. If clients aren't ready, for any number of reasons, they should be dissuaded from proceeding! At the opposite end, I've helped ppl buy with $0 down. 5yrs later, the "savers" are still saving as prices rise faster than they can save, while the $0 down purchasers are sitting pretty with 100k in equity and moving to a best-rate mortgage.
  • Jerry Quigley | 19 Apr 2016, 09:17 AM Agree 0
    So, a first time buyer waits 1 year, maybe 2 years, and saves an additional $40,000, a lot of dough, right!
    Meanwhile the price of the average home, the one they have their eye on, increases 22.6%, so on a modest priced home of $600,000, that's $135,600. Apply the extra $40,000, which is a lot of dough, and their mortgage is $94,400 more than if they bought last year.
    Great advice, TD Bank and any broker telling people to wait and save up a bigger down payment!
  • Lou | 19 Apr 2016, 09:38 AM Agree 0
    Unbelievably stupid advice for folks buying in areas where the average price is increasing by 12 to 22%. If the average price is 50 $500,000 and prices go up 10% you have to earn $75-$80,000 before taxes just to break even and keep up with that $50,000 increase. Makes absolutely no sense
  • Mortgage Guy Geoff | 19 Apr 2016, 09:51 AM Agree 0
    Wise as this may sound on the surface the basic math doesn't add up. The price of a home you want to buy today will be 10-12% higher a year from now. Its unlikely that a first time buyer can earn enough return on their existing savings plus save enough new funds to adequately compensate for the market pricing. Therefore the advice really should be if you simply can't afford it NOW then of course don't. But if you can get in as soon as you can. And if home ownership is indeed that important to you then find a way to make it work. ie. sacrifice/hard work. Maybe a few less Starbucks Lattes each month or a slightly smaller TV.

    Advice suggesting otherwise is just not well thought out. As the "professional" in the equation maybe we should think these things through.
  • Amber | 19 Apr 2016, 10:22 AM Agree 0
    This is great advice if you are living at home but if you are paying rent that is someone elses mortgage. Putting money into the equity of your own home, even at interest expenses, makes more sense then paying someone elses mortgage.
  • Tim | 19 Apr 2016, 11:04 AM Agree 0
    Unfortunately, it's a well-founded fear: housing prices have been rising faster than most FTHB's ability to save ...
  • Omer Quenneville | 23 Apr 2016, 05:56 PM Agree 0
    The best time is as soon as you qualify and can afford the commitment both financially and personally. Waiting to save more money is like waiting for water to run up hill.
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