Post # 1
DH and I are getting anxious to get into a home of our own. We’ve been renting and we’re paying around $900 a month for rent and utilities on a 1,000ish square foot apartment. It’s a great spot, but when we’re making less than $3K combined each month, it’s hard to be able to do some things that we want to do (like have kids). We know that even fairly large houses in our area are going for pretty cheap right now and the mortgages are fairly low, I just don’t know if we have enough saved yet for a decent downpayment and closing costs, etc. So, we’re meeting with a mortgage officer today at our credit union to see what they have to say.
How much did you wind up paying as a down payment on your house? Are you glad you saved longer to put more down or would you have been happy to pay less and have a bigger mortgage, but still have more space?
Post # 2
hogoboom2012: Commenting to follow! I don’t understand how some of these people put down $60K on a house! FI and I make about $100K combined but with rent, bills, etc. I don’t know how we would ever save that. It would probably take us 5 years! And we definitely want a house by then.
Post # 3
We paid a 10% deposit which was about $30k. At the time we purchased 10% was the minimum the banks would lend on. Now its 20% here so we got in just in time!
Post # 4
We put down only 5%. If we had ot get 10% we would have been saving forever and living at his parents house the whole time and I was NOT doing that!
Post # 5
20% here….which was because I needed to put a 20% minimum in order to waive the CMHC fee here (which is the mortgage insurance).
Post # 6
Vitana: +1. I put 20 percent down for the exact same reason.
Post # 7
We have 20% saved for the houses in the price range we are looking at. We plan on at least 20% to avoid paying for private mortgage insurance.
Post # 8
hogoboom2012: we are going through the process now and I wish we could do 20% to avoid pmi! We are however doing 5% and will just make extra payments towards the principle.
Post # 9
20%, but we would have put down less if we didn’t have a 6 month emergency savings in place and some extra for other expenses (i.e. appliances, tools, etc). I don’t think it’s a good idea to completely drain savings just to put 20% down.
Post # 10
I put 5% down which was about 16k. My settlement fees were just under 15k. I went through a private mortgage broker which had a much lower rate than even the military credit unions, and I had no monthly pmi–I paid 3k up front at closing which was about .75% (house was 424k) and was a one time only cost–no monthly payment.
I put that much down because I didn’t give myself that much time to save and I’d rather have the cash reserves. I definitly wasn’t going to have well over 100k on hand to have 20%. By paying the pmi up front, which is less than what it usually is for a year, I didn’t really see any downside.
Now, I bought a house that was stupid big for one person, still a lot bigger than we need even now that my fiance moved in last weekend, but it’s the house I wanted–I had a particular set of requirements and I’m glad I didn’t settle.
I would recommend keeping cash reserves, seeing how things go, and making extra payments if you want to do that. You don’t know what will come up once you move in.
Post # 11
20%, if we had to we would have used the HBP and borrowed from DH’s RRSPs to avoid paying mortgage insurance. We had saved enough and didn’t end up touching them though.