Banking on it
Well, I went to the bank this evening to chat about mortgages and things. I was quite happy to learn that what I want is fairly achievable. To be honest, I'd been worried that I'd be renting for a while longer, and that I'd need to be in a serious relationship before I could seriously consider owning a house. As it stands, I can do this on my own, and it's looking to be a year to eighteen months out. I'm tired of paying rent, and I'd like to see a return on my investment.It was nice to see that I was on the right track anyways. Now, I just need to get my spending under control. Reducing dinners out really, since that's my main form of entertainment. Probably be better in the long run, as I'll get to cook more. I love having people over. I prefer to cook for others than to just cook for myself.
posted by Serdic at 22:27
7 Comments:
Great news! Congrats!
Grats on the news. :) I hear you on the needing to cut back on the eating out, it's our primary form of entertainment too. Especially from the fact that with my new job I'm often not getting home until 6pm, and that we just like to eat out.
I know that when we were pricing out renting an apartment or buying a home, the rent pretty much equaled what a house payment would be. I was lucky to have a VA loan so that we didn't have to have a downpayment. There might be $0 down mortages from commercial lenders also, I'm not sure how it's done in Canada. :)
No, you need to pony up at least 5% of the house value as a downpayment. Anything less than 25% will cause the mortgage to be insured under CMHC, which means the lender is ensured against a mortgage default. More importantly, it means another 1-3% in interest payments.
You can do a 5/80/15 loan. Basically, you take your 5% downpayment (actually can do 0%-20%), 80% first mortgage, 15% (or the remainder) as a home equity line of credit or second mortgage. Often the rate on the 2nd is higher and potentially variable, but it can be an effective way to avoid mortgage insurance.
Thanks all. =)
Forget their sound financial advice. Buy pumpkin futures. I have a feeling they will peak sometime in February
Hmm... Your ideas intrigue me, and I wish to subscribe to your newsletter.
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