mortgage market, saving 20% isn't a requirement. The availability of default insurers like the Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial make it possible for those with less savings to enter the housing market. In this article, Robb Engen discusses why saving 20% to upgrade to a larger home worked for his family.
When using existing home equity to purchase a new home, it is important to keep in mind what you're asking for your property may not always be what you get. This combined with closing costs, real estate fees and moving expenses can have a significant impact on your savings. Engen stresses the importance of updating your budget and planning how much you want to set aside each month. Using this plan, he was able to achieve his savings goal in a little over a year.
For more information and to find the right mortgage for you, contact a qualified Mortgage Broker.
To read the full article from Moneyville's Robb Engen, click here.