If you asked 100 recent homebuyers if they were satisfied with the size of their down payment, as many as 60 of them would say no. That’s what TD Canada Trust found in a recent survey of first-time homebuyers.
This finding is hardly surprising: A bigger down payment means less interest paid, easier refinancing, lower mortgage insurance fees, and a bigger equity buffer if home prices slide.
The challenge, in a world of record-high debt ratios, skimpy investment returns and towering home prices, is saving a sizable deposit. Frustrated by the long, slow process, some new buyers would rather throw in the savings towel and get the keys to their new home faster. In fact, 55% of first-timers surveyed by TD said they would buy sooner if they had a chance to do it all over again.
The problem is it takes time to save up a down payment.
Click here to read more from the Globe and Mail.
Since the credit crisis, the Bank of Canada has stepped up efforts to quantify the risk lurking in our financial system.
Deputy Bank Governor Agathe Côté spoke about this Tuesday. She explained how the BoC models risks.
Click here to read about information she provided regarding Canadians’ debt exposure courtesy of CanadianMortgageTrends.com.
House prices in the US are showing fresh signs of improvement, and market-watchers say the window of opportunity could be closing for bargain-hunting Canadians eyeing potential investment or getaway properties.
As economic collapses go, the US housing implosion ranks among the very biggest. As many as four million families lost their homes in a foreclosure crisis that began to unfold in 2007.
From peak to trough, the average US home lost more than a third of its value. Prices plunged so much that millions of Americans found themselves “underwater” – owing more on their homes than their homes were worth.
Now, after five years of US housing pain, there are tentative signs that the worst may be over. Home prices in many cities have begun to rebound, inventory has begun to drop, sales in many of the worst-hit areas are rising, and building permits have jumped as once-moribund builders respond to growing demand.
Click here for the full CBC News story.