Pay CMHC mortgage insurance or save 20% down payment?

Pay CMHC mortgage insurance or save 20% down payment?. Will 5% down payment Mortgage Remain?

Pay CMHC mortgage insurance or save 20% down payment? video duration 2 Minute(s) 22 Second(s), published by Ryan Zupan on 17 05 2011 - 16:18:55.

http://www.ryanzupan.com Hi, Ryan Zupan here with the Mortgage Centre City Wide
Last week, we talked about mortgage insurance, what it is & what the THIS IS OUR OLD VERSION.WATCH THE NEW VERSION HERE: https://www.youtube.com/watch?v=3f-ebCjeH8o Check out the SEQUEL Video on how to .

https://www.mattthemortgageguy.com 916-529-7600 Matt the mortgage guy, mortgage Mondays episode 25, where I answer the question, do I always want to Check out the infographic, watch the video, completely disagree more with what Zillow is trying to say and advise, "Don't believe the hype" Will 5% down payment product will stay? Buy before it is late.

http://www.ryanzupan.com
Hi, Ryan Zupan here with the Mortgage Centre City Wide. Last week, we talked about mortgage insurance, what it is & what the premiums are, and this week we're going to talk about whether it's worth buying today, paying the premium, or waiting until you have a 20% down payment & avoid the premium all together.

Let's look at this example. Let's say you want to buy a $400K condo &, right now, you have 5% saved for a down payment - $20K. The CMHC premium in this case is $10,450. To avoid paying that, you will need $60K MORE than you have right now. I'm going to need $80,000 for a 20% down payment. Ask yourself, how long will it take you to save that $60K? 4 years? 5 years? Maybe longer? How much higher do you expect property values to have increased by that time? More than that $10K? Is it worth waiting?

Let's say you are able to save $12K / year & it would take you 5 years to save the 20% down payment. If you went ahead & bought today with 5% down, paid that premium, then just applied that $12K per year as a lump-sum on your mortgage, not only will you pay off that premium in a year's time, but, compared to buying with 20% down, after your 5 year term, you will have a lower outstanding balance, a lower payment & be 5 years closer to paying off your 25 year mortgage than you would waiting. All this AND you get to buy a home today, for today's prices, with interest rates still much lower than they'll likely be in 5 years & avoid paying rent for the next 5 years.

If you'd like more information on the insurance premiums, or you'd like me to calculate how much the premiums are going to cost you is it worth you buying today or is it worth waiting contact me, I'm Ryan at City Wide Financial.

Ryan Zupan
Mortgage Planner
604.250.6122
ryan@mortgagecentrebc.com
http://www.ryanzupan.com