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Author Topic: 8% down... and it gets worse  (Read 3739 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
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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.
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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 »
Quote from: arebelspy on May 09, 2012, 05:26:41 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*! :)
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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.
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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.
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