• We at RobertFloris’s  Mortgage Architects  have thought about this question. It is very hard in Ontario to live as is with car payments and day care. How are Ontarians  expected to save more in today’s market. Affordability has become an issue, but by buying a home we still require appliances, lawyer fees and other fees. Five percent should be the minimum for buying a home.


    The level of mortgage debt in Canada has sparked furious debate among industry professionals about qualification standards for mortgages.

    “I know that many will disagree with me on this. However, I think there are many good hard working Canadians with good credit, that make enough money to support a mortgage payment,” Hal Tagg an Alberta-based broker and real estate agent – who disagrees that having at least a five per cent down payment should be a requirement for attaining a mortgages —  wrote on MortgageBrokerNews.ca. “I don’t see the problem with helping them borrow the money for a down payment to help them get into their first house. If a private lender is willing to take the risk in lending the down payment money, why not let it happen.”

    The comment was in response to an article about the levels of mortgage debt Canadians have accrued across the country.

    According to BuzzBuzzHome, British Columbians have racked up mortgage debt faster than they’ve grown home values. In 2012, the average value of a house rose 83.7 per cent over 13 years, to $535,400 – this being before the market went ape. The amount of mortgage debt West Coast homeowners took on, however, increased more than 132 per cent over the same period to $241,800, or 45.2 per cent of the value of the home.

    And at least one mortgage professional disagrees with Tagg.

    “If you can’t save five per cent for a down payment, you have no business buying a house,” Blair Anderson of Anderson and Associates said in the original article. “I don’t want my clients to run into a situation where they have to get rid of the house. It’s not good for the market or for them as individuals.”
    Robert Floris is a mortgage broker with Mortgage Architects in Hamilton Ontario.

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