Author Topic: 8% down... and it gets worse  (Read 3413 times)

Gerard

  • Handlebar Stache
  • *****
  • Posts: 1450
  • Location: eastern canada
8% down... and it gets worse
« on: May 09, 2012, 05:10:36 PM »
Check out the link, about a couple who put 8% down (after mortgage insurance) on a $560K semi in a working-class Toronto suburb in an overheated real estate market, at a 30-year amortization and a 10-year term (both long by Canadian standards). Plus, they don't understand how refinancing penalties work. But here's the punch line -- this isn't a case study, this is a financial blogger for Canada's largest-circulation newspaper!

http://www.moneyville.ca/blog/post/1174158--why-we-ve-locked-in-to-a-10-year-mortgage

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28257
  • Age: -998
  • Location: Seattle, WA
Re: 8% down... and it gets worse
« Reply #1 on: May 09, 2012, 05:26:41 PM »
Yikes.

Even after the crash here, people just don't bother to learn and figure out how to do things the right way.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Gerard

  • Handlebar Stache
  • *****
  • Posts: 1450
  • Location: eastern canada
Re: 8% down... and it gets worse
« Reply #2 on: May 09, 2012, 05:55:41 PM »
Even after the crash here, people just don't bother to learn and figure out how to do things the right way.

Of course not! Because *your* crash could never happen to *us*! :)

James

  • Handlebar Stache
  • *****
  • Posts: 1680
  • Age: 48
  • Location: Rice Lake, WI
Re: 8% down... and it gets worse
« Reply #3 on: May 09, 2012, 07:15:18 PM »
It's really interesting how different Canadian mortgages are.

Norman Johnson

  • Stubble
  • **
  • Posts: 174
  • Location: Moving around, currently in Florida!
Re: 8% down... and it gets worse
« Reply #4 on: May 09, 2012, 08:50:38 PM »
The author said he feels queasy after borrowing a half million for a house... I would probably be a bit beyond queasy. I would probably need a bucket beside me while signing at the bank. I thought I was going to throw up when I signed the papers for my house and I wasn't even borrowing 100K.

At least the commenters have a little more sense.