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Should five per cent be a requirement?

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Justin da Rosa | 11 Feb 2015, 08:59 AM Agree 0
The level of mortgage debt in Canada has sparked furious debate among industry professionals about qualification standards for mortgages.
  • John Walter | 11 Feb 2015, 11:27 AM Agree 0
    My parents lent me the money for a down payment when I bought my first house. I lent both my kids the down-payment when they bought their first homes. None of us had any problems. I don't think the biggest criteria is HOW MUCH DOWN you have, but whether you CAN and WILL make the payments
  • | 11 Feb 2015, 11:57 AM Agree 0
    Why do they keep harping about the mortgage debt which is highly regulated????? Consumer debt is the big issue and it seems the sky is the limit on how much an individual can accumulate!
  • Jason Clements | 11 Feb 2015, 02:05 PM Agree 0
    The original article cautioned that just because you're approved for a $500K house doesn't mean you should buy a $500K house.

    The problem is a $500,000 house in a market like Vancouver or Toronto is a lot different than a $500K house in any other part of Canada. I agree that if you can't afford to furnish and maintain the $500K house then it's most likely more house than you need.

    However, if that $500K house is a starter house in your market then there should be some allowances for people when it comes to having a down payment (at 5% that's $25K, which is a lot).

    In a smaller market the same house could be purchased for a lot less and a lot smaller down payment.
  • jackie laurin | 17 Feb 2015, 03:10 PM Agree 0
    I sold a lot of homes in the early part of my career to many where new Canadians borrowed their downpayment. These are not the people that defaulted or were irresponsible, if you don't have the 5% down and you need to borrow it, the government shouldn't regulate it's too much debt, i'ts not their pocketbook or their repayment obligations. Their governing should not be determining financing for the Canadian Citizen.
  • mike b. | 19 Feb 2015, 10:38 AM Agree 0
    There is a big difference in buying a house as an investment and buying one for shelter! In my experience most people do all they can to maintain and keep THEIR house in good and bad times,especially when rents are similar to mortgage payments.It is the inexperienced "investors" that cut and run when their equity is gone .Household debt should be calculated without a mortgage payment included:they dont include rent! It is shelter costs!! mike b.
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