Parents Gifting $82,000 to $130,000 For First Home On Average (Canada)

[Rahrahbitchson 23,191]

Those spoiled kids be like

 

 

[Economy 52,843]

8 minutes ago, Aetheryte said:

I work in the mortgage industry and the idea of an $82,000 downpayment is so absurdly high to me. I don't recall ever seeing that in any loan officer's pipeline.

Ur profile says ur from the US

 

I laugh when Americans complain that housing is too unaffordable cuz excluding NYC, LA, Los Angelos and a few others in States like California most of the US actually isnt all that bad compared to most developed Countries

 

Countries or places like Canada, New Zealand, Hong Kong for example, now thats true realestate madness

 

I know Australia was also terrible not that long ago but they did go thru a sizable decline in prices. I dont know if its re-inflated since then tho

[Economy 52,843]

3 minutes ago, Rahrahbitchson said:

Those spoiled kids be like

 

 

More like our parents were spoiled with much much better home prices relative to their incomes

[Fresco 1,688]

Reminds me of how I learned what mortgage insurance is. In the USA, if a mortgage did not have a 20% downpayment (2% down has been allowed), the bank would add mortgage insurance expense to your monthly payments. The mortgage insurance that the borrower paid doesn't protect the borrower. It protects the bank so that if the borrower stops paying the mortgage, and the bank forecloses and takes the house, the bank has insurance that covers the 20% anyway. I remember when a law was passed that said if the principle paid was more than 20%, the bank could not charge mortgage insurance anymore. 

 

[Economy 52,843]

11 minutes ago, Fresco said:

Reminds me of how I learned what mortgage insurance is. In the USA, if a mortgage did not have a 20% downpayment (2% down has been allowed), the bank would add mortgage insurance expense to your monthly payments. The mortgage insurance that the borrower paid doesn't protect the borrower. It protects the bank so that if the borrower stops paying the mortgage, and the bank forecloses and takes the house, the bank has insurance that covers the 20% anyway. I remember when a law was passed that said if the principle paid was more than 20%, the bank could not charge mortgage insurance anymore. 

 

We have a simmilar rule here. Default insurance and its also for downpayments under 20% (which is the vast majority of them)

 

Its also to protect the bank from default

[RAMROD 117,011]

Well, who else but parents who can jump start you on these things

 

I think it is OK so long they afford doing that. I must think they might come from middle upper to upper class obviously.