buy now or wait until I have 20% down?

[Mibz]

I think you should rephrase that to say "Don't buy brand new furniture unless you have pets that will mangle your brand new furniture". If you're capable of keeping your shit in good condition then there's no reason not to buy new.

[Crystalrw]

I get where you're coming from, Mibz. Maybe I should say "Don't buy brand new furniture unless you have pets or friends that could mangle your brand new furniture". My sister gouged my $900 dining table 30 minutes after I finished setting it up.

I've really had to learn to let go of any attachment I have had to my belongings and my hardwood floor.

But really, I wish I'd saved some of the $20,000 I spent on furniture when I bought my house for a nicer car or even just to put in the bank.

[BananaFob]

Keep in mind that most mortgages allow you to pay principal off up to around 15% at each anniversary date of your mortgage term if you really do want to build equity faster. There is absolutely nothing wrong with putting down 5%.

Msommers, keep in mind that the CMHC fee is added to the principal and amortized... $5k over 25 years is nothing.

[msommers]

Originally posted by Sugarphreak
msommers, If you are going to include rent, you should also include housing costs such as strata fees, property tax and utilities that used to be included in rent.

Originally posted by BananaFob
Msommers, keep in mind that the CMHC fee is added to the principal and amortized... $5k over 25 years is nothing.

Yeah 5K didn't really seem like a hell of a lot to me either given the time frame. And with added fees that Nick mentioned, is it really a wash in the end and the guy could move into a home 10 months earlier?

[Mibz]

Originally posted by Crystalrw
I get where you're coming from, Mibz. Maybe I should say "Don't buy brand new furniture unless you have pets or friends that could mangle your brand new furniture". My sister gouged my $900 dining table 30 minutes after I finished setting it up.

I've really had to learn to let go of any attachment I have had to my belongings and my hardwood floor.

But really, I wish I'd saved some of the $20,000 I spent on furniture when I bought my house for a nicer car or even just to put in the bank.

Yeah, I suppose it all depends on your tolerance for that sort of thing. I laid down my brand new bike the first day I had it and didn't care. Meanwhile if I throw a dirty rag on the hood of my wife's 10 year rusty car she gives me shit :P

[sham_ip]

Originally posted by msommers
10 months doesn't seem like much but what are the numbers?

At $1100/month for rent, that's $11,000.

Now how much would an additional $11,000 + mortgage interest + CMHC be? Keeping things the same and very basic, 25 year amort. + say 4% interest, paying monthly (wouldn't suggest if possible).

1) 12% down of 280K = 33,600. Therefore mortgage is $246,400.

Interest paid: $143,776.99
CMHC paid@2%: $4,928.

2) 20% down of 280K = 56,000. Therefore mortgage is $224,000.

Interest paid: $130,705.18
Rent paid: $11,000.

Difference: $4999.81 in favour of #2.

**Someone should check my numbers and that I've done this properly.

Thanks msommers,
Interesting calculations, I was not sure that I will save $ if I wait till I have 20$. I wanted to buy now to save the rent !!

[sham_ip]

Thank you guys for the feedback.. Most of you recommend waiting tilll I get 20% down..

[G]

Why the rush to get yourself in quarter million debt? There will always be opportunities to do that.

[muse017]

I was planning on purchasing a condo with only 10% down while ago but then I decided to go for higher percentage(25%) based on calculation I did. I might be broke atm but in the long run I know I'll be better off and save a lot quicker with low monthly payment(950ish). Also 2.89% 3yr fixed with 20/20 option I got was an offer can't refuse and worth waiting another 6 or so months.

[dflamzer]

You're also neglecting the fact they expect house prices to spike sharply in the upcoming year.

[Abeo]

Originally posted by dflamzer
You're also neglecting the fact they expect house prices to spike sharply in the upcoming year.

"They" (CMHC and CREA) are expecting a 2.5% yearly increase. That's hardly beating inflation, and about the same the DP would increase if invested in a high interest savings account. Economists are predicting stable to lower house prices, depending on the region.

[dflamzer]

2.5% OVER $300,000 though would clear any substantial benefit though. It's sort of a wash situation.