First time home buying advice

posted 3 years ago in Home
Post # 2
Member
2244 posts
Buzzing bee

We bought last year and did not have 20% to put down. We put down 10%, and our interest rate is amazing, so I’m sure we pay less overall than others who did put the full 20% down. We went with a conventional loan because it worked out best. 

It’s not ideal to have to pay PMI for a bit but I think it worked out for us. Our mortgage is not much more than we were paying in rent every month. 

Post # 3
Member
356 posts
Helper bee

 

DuckEBee:  I didn’t put 20% down when I purchased my home. If you guys can afford it, I’d say go get approved for a mortgage! Most of the time, a mortgage payment is much less than rent. Not to mention, this way you’re “investing” your money instead of throwing it away just for a place to live.

Post # 4
Member
8917 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

You definitely don’t need 20% down, especially because PMI (you get charged ~0.5% interest for private mortgage insurance on a conventional load if you don’t have 20% down) on a relatively inexpensive house isn’t much at all.  Our house was $130,000, we put down 10%, and our PMI is only like $25-40/month.  I’m really glad we didn’t wait until we had 20%.

House hunting and the whole buying process is a major pain in the ass though!!  There’s some great advice for first-time buyers in previous threads on here… I’d search through the boards when it’s time to start looking.

Post # 5
Member
3756 posts
Honey bee
  • Wedding: April 2014

I’m buying a house with only 3% down, yes our monthly payment is higher but we plan to pay extra to principal each month. There are a bunch of great first time buyer programs out there. I definitely recommend doing your homework and finding out what your options are. We could’ve waited another year and saved up more for a down payment, but the market is starting to shift and prices and interest rates are going to increase so we wanted to get into a house sooner rather than later. Good luck!

Post # 6
Member
8426 posts
Bumble Beekeeper
  • Wedding: April 2013

I don’t think it’s a good idea to deplete your savings just so you can put 20% down.  However, if you’re able to comfortably, it does save you a bit of money in the long run.

Post # 7
Member
5697 posts
Bee Keeper
  • Wedding: August 2012

It all depends on what you are comfortable with. The benefit of having 20 down as you know is not paying PMI. PMI on your house shouldn’t be much. PMI on our house is 299 a month but our house was 325k and we only put like 3% down. Even with PMI our mortgage is within a comfortable range for us and so far we’ve been able to write it off on our taxes which I am sure will end this year. Having 20% down though is not a requirement, and I’d say probably most people do not have that.

Post # 9
Member
10495 posts
Sugar Beekeeper
  • Wedding: January 2011

I don’t know where you are to give advice.  If you can make use of the HBP and take out money from RRSPs to get to the 20%, I would recommend that to avoid CMHC fees.

What is your downpayment % approx without touching registered accounts?

Post # 10
Member
274 posts
Helper bee

DuckEBee:  I realize this is a few months old, but what we did was 10% down and pay extra every month (about our payment plus half). Good luck!!

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