The Best Place to Save Your Home Down Payment Apr 24th

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
 home equity

The State of Mortgage Consumers + MORE Apr 27th

Mortgage consumer debt reached a record level in the second quarter of 2017, yet mortgage holders have proven capable of managing their increasing monthly obligations. That’s according to CMHC’s recently released Mortgage and Consumer Credit Trends report, which said Canadian households&.... More »
 mortgage buyout

What the Bank of Canada Rate Increase to 1.5% Means for Canadian Home Owners and Home Buyers + MORE Jul 17th

From personal loans to mortgages, simply put, it’s now more expensive and more difficult for Canadians to borrow money. At the beginning of 2018, new mortgage rules raised the bar for qualification.  Under federal law, all financial institutions are now required to put any new applicants under a.... More »
 Canada mortgage

The Run Down on Reverse Mortgages: What Are They and Why Do Homeowners Get Them? + MORE Jun 23rd

Although it may seem like a complicated or paradoxical concept, the features that make up a reverse mortgage are rather simple. A reverse mortgage is a home equity product that allows homeowners aged 55 years and older to access up to 55 per cent of the value in their home. Homeowners can choose to.... More »
 loan

Looking to boost Cash Flow? New Flexible Mortgage could be a game-changer! + MORE Aug 1st

There’s a great new flexible interest-only mortgage product that could prove beneficial for a number of borrowers, including first-timers, real estate investors, professionals, seasonal workers and others looking for lower monthly mortgage payments. Designed to help borrowers increase monthly .... More »

The Latest in Mortgage News – House Prices Under the Microscope May 27th

For homebuyers and homeowners alike, all eyes have been on the housing market in recent months waiting to see where house prices are eventually headed. With house prices already cooling on average across the country, particularly in and around the Greater Toronto Area, some are speculating that the .... More »
The Best Place to Save Your Home Down Payment
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…

Continue Reading On ratesupermarket.ca »

Share

PinIt
Compare insurance quotes through Kanetix.ca - save time and money!