Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
It’s a mortgage broker’s job to remain in touch with their clients. But because years can pass between dealing with these clients, and perhaps for a lack of organization skills, that doesn’t always happen. Unfortunately, when it’s time to refinance or renew the mortgage, these fo.... More »
Despite slowing price gains in Vancouver and a moderation in Toronto, average home prices are still notoriously expensive. So how are these prices affecting the lives of residents in these two cities? Thanks to a new comprehensive survey released this week, we finally have some answers: High Home Pr.... More »
A number of Canadian lenders have slashed their variable mortgage rates in recent days, even as some of those same lenders are raising their fixed-rate mortgages..... More »
The new school year is in full swing and if you’re a university or college student, then you’ve probably already settled comfortably into your new routine and dorm room. As you buy books, begin assignments and make new friends, the last thing you’re likely thinking about is your credit. But.... More »
Last month the Canadian Mortgage and Housing Corporation (CMHC) formally asked the Canada Revenue Agency to take a more active role in verifying income claimed on mortgage applications in an effort to clamp down on mortgage fraud. The CMHC says the move is necessary given that “the industry’.... More »
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…