Cash or Mortgage

[desmond]

If cash is readily available, is it advisable to buy a house or condo and pay outright cash?

[TomcoPDR]

We need more info on your life, lifestyle, spending habits, income, expenses, etc...

Mortgage is a way of equity leverage, it can work FOR or AGAINST you at times.

Cash is always "king", but has no future value (IMO)... What I mean by this (in my own terms) is that you have $10 bill today... in 5 years, that $10 bill is still going to be a $10 bill... However, in 5 years cost of things will most likely go up (inflation)

[Xtrema]

Pay cash and take out secured LOC if you need a loan.

Secured LOC is way cheaper than mortgage.

[JordanAndrew]

Originally posted by Xtrema
Pay cash and take out secured LOC if you need a loan.

Secured LOC is way cheaper than mortgage.

+1

I wish I had a shit load of cash to buy a house out right.

[desmond]

Originally posted by TomcoPDR
We need more info on your life, lifestyle, spending habits, income, expenses, etc...

Mortgage is a way of equity leverage, it can work FOR or AGAINST you at times.

Cash is always "king", but has no future value (IMO)... What I mean by this (in my own terms) is that you have $10 bill today... in 5 years, that $10 bill is still going to be a $10 bill... However, in 5 years cost of things will most likely go up (inflation)

For new immigrant i mean. No job in Canada yet.

[Redlyne_mr2]

Cash is king.. bills suck.

[desmond]

Originally posted by desmond


For new immigrant i mean. No job in Canada yet.

That being said, i wonder if new immigrants are allowed to have housing loans / mortgages. Probably with a huge downpayment.

[turbotrip]

lol please dont listen to the responses on here

[barmanjay]

Paying out a house right away saves you Tonnes of interest payments

If you are borrowing for the cash, then weigh your options carefully.

Personally I like the idea of paying off the house right away and getting a HELOC if you need money for anything else.

If I could buy outright with no-mortgage I would in a heartbeat.

There are 'new-to-canada' programs that some of the lenders have. If you are working, have a good international credit score (coupled with a good report from the bank you are dealing with here), you can have as little as 5% down to purchase a house.

[dr_jared88]

I'd definitely pay cash and then get a HELOC.

[will_e_chill]

Put a 25% down payment on the house and you can probably qualify for mortgage with any lender and you will save on having to pay CMHC insurance.

Take the other 75% of your cash and invest in a business that you will own/manage.

If you work hard and are have some brains, you should be able to make a higher return than real estate appreciation and might even qualify for a business loan if you are putting up a 75% of your own cash.

imho.

[InRich]

I think hes wondering about the fact that if he does pay the house outright, will he have hassels from audits, canada revenue problems, or anything of that sort.

[ipeefreely]

Originally posted by desmond
If cash is readily available, is it advisable to buy a house or condo and pay outright cash?
No. Mortgages are fun that why most people have one!:dunno: :nut:

[snoop101]

God I wish I had this issue.

[karen hudson]

Original Post Removed. (Please read the Forum Rules and Terms of Use (http://forums.beyond.ca/articles.php?action=data&item=1) before posting again, or risk getting banned).

[eblend]

I was in the same situation and ended up going with a HELOC (I didn't own a house but have good credit score + 30% downpayment. Once the papers and everything went through I paid out the HELOC I had outright the same day it became active. For me it was a matter of timing, otherwise I would have gone all cash. The benefit of getting a HELOC and then paying it off is the fact that MLS prices are trusted by the banks as being the house value, whereas if you are to get a HELOC after buying a house, the bank would need to do a special assesment on your house to gauge its value which costs some money.

Anyways, pay cash is what I say, but if you do want to do the HELOC thing contact Stan Stankovich (403.975.4655) at TD Canada trust and he will help you out, and make things very quick if you have majority of the funds available as cash. He is a mobile morgage specialist and will meet you at a location that works for you to discuss.