Thanks chittesh for this post.

I agree with chittesh - "Wait for a few months, house prices are high right now". "Dont put all your eggs in one basket"

Try to avoid CHMC fee and longer mortgage period.

But I am not sure it will take 3-4 yrs for interest rates goes up. Next summer/fall will be interesting when BOC low interest offer ends along with PST is coming.

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If inflation wins and rates rise, the market will correct. Has to. Affordability takes a big hit and an asset priced at the top of its cycle declines. Hundreds of thousands of people face the real potential of negative equity.

If deflation wins, and rates stagnate, the market will correct. Has to. Falling demand, consumer stress, rising unemployment and business failure dictate it. Hundreds of thousands of people in this scenario also face negative equity.

http://www.greaterfool.ca/

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Originally posted by chittesh

If your mortgage exceeds more than 3.5 times your gross annual income you COULD be in trouble. Remember interest rates now are quite low and all it takes is a solid 3-4 years of decent economic performance to shoot it back to 5-6% levels.
If i were you i would take a mortgage < 275K irrespective of the downpayment..Distribute your money... Invest in home, RRSP (GIC), Stocks, Funds etc. Dont put all your eggs in one basket..

Wait for a few months, house prices are high right now.. with the first rise in the interest rates they will come down again...

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Hi All,

Interesting debate , but another debate I had with my agent was regarding school too, as per him it is worth spending 100k extra because of the the way york region schools are being managed compared to peel region school which made me more confused as I want to go for arnd 300K house whereas per him I should think abt 400k house which will be arnd Vaughan area , anyone has any experience with york region school????

A decent private school is 10-12K a year
Buy a house in a central location where you can get to/from work in 45 mins- 1 hr and where future job prospects are good (i mean there is a higher concentration of companies looking for people with your skillset) I will give you a example most IT jobs can be found at 401 or north of 401 in mississauga.. banking jobs are more around 403. etc

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Live and Let Live

Vaughan is certainly more pricier compared to Brampton. Where is your agent's office? Is he/she working out of Vaughan? Maybe Brampton is not convenient for him/her to show! Or maybe the agent does not have much knowledge of the Peel region.

Do some research on Peel & York school boards yourself. YOU need to make a decision on where you want to live and what & how much you want to put in. Go with what is important for you and dont get dictated as to what is best for you.

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(Opp Square One - HWY10/403)
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Very good post after long time..

http://www.greaterfool.ca/

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Well, chew on this: Two years ago when RBC did its annual survey of homebuying intentions it asked first-time buyers how much of a down payment they planned on making. Twenty-one per cent said their down would be “between $1 and $5,000.”

And here’s another good question: If I want to buy that $400,000 house and have $200,000 for a downpayment, why am I paying the same mortgage interest rate as the first-timers who barely have pizza money? Don’t they constitute a larger risk? Where’s the risk premium on the money loaned to them? Why is this system so screwed up that ultra high-risk borrowers have money showered upon them by our famously conservative and prudent banks?

The answer’s simple: the banks don’t take any risk. It’s all on the taxpayers, thanks to CMHC.

Here’s how CMHC and the federal government are inflating the real estate bubble:

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Originally posted by rahul_singh23
The answer’s simple: the banks don’t take any risk. It’s all on the taxpayers, thanks to CMHC.

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Originally posted by sville
I thought it's all in the CHMC insurance fee. Backup your statement with facts.

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