Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
5 surprises to avoid when switching mortgages before your term ends + MORE Jul 31st
These days, being a home owner with a mortgage can feel like you’ve ordered the chicken dinner before realizing there was a steak special. You orchestrate a last-minute switch before your meal arrives, and it’s only once your overcooked steak is served that you know you’ve made a mistake.
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CMHC’s First-Time Home Buyer Incentive Falls Short of Expectations Jun 20th
The Canada Mortgage and Housing Corporation held an official announcement yesterday to release details of its First-Time Home Buyer Incentive (FTHBI). While officials reiterated how this shared-equity program will help young middle-class Canadian buyers, there were scant new details beyond what has .... More »
Financial infidelity hurts, but there are ways to get past it + MORE Oct 22nd
The down payment for your home purchase is topped up, and it’s finally the day you and your partner meet with a mortgage adviser. But something isn’t clicking. When the adviser runs a credit check, your joint report comes back in shambles with unexpected outstanding debt. The adviser ca.... More »
How the mortgage stress test is impacting qualification amounts + MORE Jun 22nd
As of June 2022, we are currently seeing unnatural discrepancies in the size of mortgage loans borrowers will qualify for, and it’s all because of a rift in the space-time stress test continuum. You see, most 5-year fixed mortgage rates are already over 5%, making their stress test a full 2% highe.... More »
Latest in Mortgage News: Newton to Provide Free TransUnion Access to its 6,000+ Velocity Users + MORE Jun 28th
Starting today, the more than 6,000 mortgage brokers who use the Velocity mortgage operating system will gain free access to TransUnion credit reports for the remainder of the year. The offer is part of a campaign by Newton Connectivity Systems, which operates Velocity, to encourage greater diversif.... More »
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…
