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Host: Hi welcome back to the show. We are speaking today with Josh Higgelke, he is with
Axiom Mortgage Solutions. Thanks for joining us again Josh.
Josh: Thank you very much for having me. Host: So big question here: "What is your
opinion on the Canadian government's rules to tighten up mortgage lending?"
Josh: Truthfully, I wish they could also tighten up other areas in the financial world like
other consumer that. But ultimately they are trying to do, well they are trying to do good
to make sure Canadians don't get themselves too far into that they are trying to protect
our economy and our housing market. So alternately I think they are doing a good thing and I
wish they could also focus on areas like credit card companies or vehicle loans, etc. But
ultimately they are trying to keep us out of the same sort of issue we have in the US,
so it is probably for the greater good. Host: Yeah, I tell you, your point is well
taken because credit card must affect the mortgage industry quite heavily.
Josh: It has a significance and impact on that actually. Just saw that everyone was
on household income debt, how far debt Canadian household is, could have a big impact on our
economy as well, right. Host: Absolutely. Well that leads to a question
through the forum, from Fred Cuns and he is from Waterloo, Ontario: "Why is a down payment
required and how much is normally required for down payment on a home?"
Josh: The minimum down payment required on a home is 5% down. They like to see that you
have something in it when you are purchasing a home, that you have now committed to the
home and you put something down that you work hard-earned and you have got some of your
own money to gain, your skin on the game so to speak. They are not just giving away these
mortgages for free, but you do have to put some of your own money down and have earn
the position to become a home owner. Host: And regarding the minimum amount, you
said what it is 5% was it? Josh: Yeah if it's an owner occupied property,
we are looking at 5% down payment. Host: Is that a suggested amount or what would
be a general range where somebody should be looking is more of a down payment better than
necessarily the minimum? Josh: Well absolutely yes, the minimum is
5% now there is some zero down products out there; I've talked about that before on the
show. They might not be for everybody. But if we are just talking down payment, you do
need 5%. If you can come up with as much as 20, that is great because you avoid mortgaging
insurance premium or whatever refers to you as CMA [00:02:47].
Host: Alright. Josh: The more down payments you come up,
the better. But the minimum to the game will be 5% down.
Host: Great answer. Thanks very much Josh for joining us today and you clarified some
key points here. Josh: Thank you very much. Have a great day
Host: So we have been speaking with Josh Higgelke, he is a partner with Axiom Mortgage Solutions.
You can also check out his website at GreatCanadaMortgage.com, a place where you can research, ask questions,
and get answers. Thanks very much for joining us everyone. See you soon.