Author Topic: 8% down... and it gets worse  (Read 3170 times)

Gerard

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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

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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, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Gerard

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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

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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

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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.