Blog by Ken Morris

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No More 5% Down?

The Federal Government is talking about upping the down payment amount needed to buy a home. Housing is a big sector of the economy, the Tories should tred lightly here!


No More 5% Down? Blog Transcription

Hey there! Rob Reynar here, just checking in. News today that the Federal Government is talking about getting rid of the five percent down option for buyers and moving that to a higher number. I'm just guessing probably ten percent, I don't think there's any point raising that a percent or two. So, if they go from five to ten percent, the way it used to be. There's a lot of debate what that's gonna do to the real estate market in general. I know not in all markets, that's that crucial I mean if you're in Oakville where the average price is seven hundred or eight hundred thousand. I mean, no one's doing five percent down anyway, but in a market like ours where three to four hundred thousand is very common. Four hundred thousand, that's going from twenty to forty thousand dollars down on a house, that could have a very significant impact in the market place. Asking people to double the amount they need to save to put down, that could be very prohibitive, in some cases I would worry that, that might really put a damper on what is increasingly a brisk real estate market. So, I hope the federal government, take some caution before they do that. I'm not sure how popular that move would be with Canadians. You know after all they're not telling Canadians, you know, put a limit on your credit cards, you don't over extend yourself at Christmas. They're not telling Canadians not to over extend themselves on a lease on a new vehicle. Yet they're telling Canadians how much house they can buy, that might not go over very well. I'd love to hear your comments on this issue. I think it's an interesting one., R-E-Y-N-A-R, Talk to you soon, buh bye!

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