What should be down payment 5% or 20% in current market?

If someone is buying a home and has 20% down payment to make.

What would be the best option to pay 5% or pay 20% as down seeing the current housing market?
1. Pay 20% and relax
2. Pay 5% and invest remaing 15% amount in better growth schemes in investment market and have tolerance to withstand ups and downs of market.

Any expert guidance would be highly appreciated. And are there better growth opportunities in Investment market available?

Thanks,

Kalia

Hi,
With the current scenario in mind , Silver is currently offering an excelllent oppurtunity for appreciation of a minimum 0f 30 % from the current price levels.
Approx 32000 INR per Kg.

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mor

Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.

The difference is $11970 in CMHC for a 35 year amortization on a 400,000 house that gets bundled up in your mortgage if you go for 5% instead of 20%. Plus you will pay interest on the extra 15%+CMHC over the amortization period.

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Originally posted by ashedfc

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Originally posted by kalia
If someone is buying a home and has 20% down payment to make.
1. Pay 20% and relax
2. Pay 5% and invest remaing 15% amount in better growth schemes in investment market and have tolerance to withstand ups and downs of market.
Kalia

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If one has the liquidity for 20% (it's more advisable to save CMHC Fee), which is explained by rajcanada ............. as.......

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Originally posted by rajcanada
The difference is $11970 in CMHC for a 35 year amortization on a 400,000 house that gets bundled up in your mortgage if you go for 5% instead of 20%. Plus you will pay interest on the extra 15%+CMHC over the amortization period.

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The total cost of 5% down is substantial. You 15% (other money's) expected investments returns have to exceed the cost the CMHC & interest cost on the CMHC fee, to be justifiable.

At the same time: a 20% down will save the CMHC+Interest on CMHC fee, but you will have exhausted 20% of your liquid money into a non-liquid real estate (home, whatever you call it) at a time when RE market has peaked, & is expected to stay flat or probably go down (western Canada is already witnessing a downward trend).

I would recommend: Do Both........ there is a Financial Planning strategy. PM me for more details.

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