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Is 5 per cent down enough?

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LukeWyatt | 12 Feb 2015, 04:39 PM Agree 0
“If you can’t save five per cent for a down payment, you have no business buying a house."

Mortgage brokers may say otherwise but the fact remains that high debt levels isn't good for the market or the economy? Agree or disagree?
  • Frieda | 13 Feb 2015, 12:36 PM Agree 0
    Having to borrow for the downpayment is how the crash happened. Dollar value plummenting jobs vanishing. Now is NOT the time to take on more debt that you can chew. BTW there is NO such thing as cheap money. Think about it.
    The idea that an economy can be saved with people getting more into debt is daft.
  • Frieda | 13 Feb 2015, 12:44 PM Agree 0
    Having to borrow for the downpayment is how the crash happened. Dollar value plummenting jobs vanishing. Now is NOT the time to take on more debt that you can chew. BTW there is NO such thing as cheap money. Think about it.
    The idea that an economy can be saved with people getting more into debt is daft.
  • THE REALTOR ADVOCATE | 25 Mar 2015, 01:28 PM Agree 0
    5% IS NOT ENOUGH! Borrowers with low down payments and borderline debt service ratios are susceptible to higher rates of interest and fees. This type of lending practise leads to sub-prime type loans which eventually is not good for the borrower and the economy. The present lending practices regarding monitoring real estate contracts in Canada is very slack. Transparency and disclosure within our present system is minimal. New legislation and lending guidelines should be incorporated on all types of financing in Canada. Therefore, the down payment of 5% is only a small portion of a potential problem. Signed: THE REALTOR ADVOCATE
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