Which side of the debate do you fall on?

Which side of the debate do you fall on?

Which side of the debate do you fall on? The debate among brokers about minimum requirements to attain a mortgage continues...

"The majority of people who buy with five per cent down are first time buyers and either living with parents or renting," Jame Robinson wrote on MortgageBrokerNews.ca. "Either of those scenarios probably have a lower housing cost than the cost of owning, so if they cannot save any money while living on the cheap, how can they possibly have the discipline to be responsible homeowners."

His comment came on the heels of a debate among mortgage professionals about qualification standards and minimum requirements for mortgages.

“I know that many will disagree with me on this. However, I think there are many good hard working Canadians with good credit, that make enough money to support a mortgage payment,” Hal Tagg an Alberta-based broker and real estate agent – who disagrees that having at least a five per cent down payment should be a requirement for attaining a mortgages --  wrote on MortgageBrokerNews.ca. “I don't see the problem with helping them borrow the money for a down payment to help them get into their first house. If a private lender is willing to take the risk in lending the down payment money, why not let it happen.”

The comment was in response to an article about the levels of mortgage debt Canadians have accrued across the country.

According to BuzzBuzzHome, British Columbians have racked up mortgage debt faster than they’ve grown home values. In 2012, the average value of a house rose 83.7 per cent over 13 years, to $535,400 – this being before the market went ape. The amount of mortgage debt West Coast homeowners took on, however, increased more than 132 per cent over the same period to $241,800, or 45.2 per cent of the value of the home.

And at least one mortgage professional disagrees with Tagg.

“If you can’t save five per cent for a down payment, you have no business buying a house,” Blair Anderson of Anderson and Associates said in the original article. “I don’t want my clients to run into a situation where they have to get rid of the house. It’s not good for the market or for them as individuals.”