Please inform regarding purchase of property in Toronto. It is better to spend only 10% or 35 % if I have money and eligible to take loan.

Thanks

-----------------------------------------------------------------
rak

It is a very simple answer: If the money you have earns a higher rate of return that you would be paying on your loan - definitely take a loan - as much as possible. However, if it is the other way around, take as little loan as possible. If you have enough money to pay for the full price of the house, better to pay that and then if you need, take a line of credit against the security of your fully paid house.

As per Canadian rules, if you pay Down payment of less than 25%, you have to necessarily buy a CHMC insurance - that becomes an additional cost so while calculating you loan cost, you have to take that into account.

-----------------------------------------------------------------
Chandresh

Advice is free – lessons I charge for!!