First time home buyers look to their families, the media and the Internet for all their information on how to buy a home. As a result, they know that they need 5% of the total home purchase price to buy the home of their dreams. While this is true, there are a few things that family may not tell you or they may not be aware of.
Putting down as much as you can afford is a great idea. We have all heard that mortgage rules are tightening, the economy in Alberta is down and lenders are being a lot more selective in who they give mortgages to. What you may not have heard is that the mortgage insurers – CMHC, Genworth Financial and Canada Guaranty – are also looking at lenders more carefully before approving mortgage default insurance. They are looking closely at employment, credit and how likely you are to stop paying your mortgage. While 5% is the minimum, if you have a few late payments from your college days or a collection from a cellphone company on your credit report, they will think twice about giving you an approval. However, if you put 10% down they will look at your differently. Putting twice the minimum down payment shows commitment. It shows that you have “skin in the game” and are less likely to default on your mortgage. If they are reluctant to approve your mortgage, a higher down payment can sway their decision.
For More Information See Link: https://dominionlending.ca/news/blog-posts/why-a-big-down-payment-is-better/
Brought To You By:
Dave, Cindy and Amanda Walker
The Walker Real Estate Team
19 Year Emerald Medallion Members
HomeLife Benchmark Realty
#1 1920 152 Street
South Surrey, B.C. V4A 4N6
604-889-5004 or info@WalkerRealEstate.ca
Kimberly Walker, Mortgage Broker
Cindy Walker, Licensed Assistant
14 Years Mortgage Experience
Dominion Lending Centers
Valley Specialists
#111 20434 64 Avenue
Langley, B.C. V2Y 1N4
604-889-5004 or cindywalker@shaw.ca
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