Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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The Best Place to Save Your Home Down Payment
– ratesupermarket.ca
The Canadian housing market can be difficult to gauge at any given time, especially during times of new mortgage qualifications, news of sales decreasing, and forecasts of interest rates increasing in the near future.
Under the current conditions, some potential home buyers may be conflicted; they may have a down payment, but they are not ready to buy.
So in the meantime, where can you park your down payment to get a higher return later?
In Canada, you can get away with as low as five per cent down to qualify for a mortgage, but if you’re willing to wait a little longer to buy a home, there are plenty of investment options where you can potentially grow your down payment, such as ETFs and stocks. It should be noted, though, that while there is no such thing as a risk-free investment that will give you a high return, ETFs and stocks are much riskier investments.
A house down payment, presumably, is cash you’ll need in the short term. So it’s best to keep that money relatively safe, in an account or investment that’s easily accessible and likely won’t drop in value any time soon…
