vanity

Hey folks,
So..first time home buyer buying into a high cost Van market. Looking at my finances we are going to pour nigh everything we have into a mortgage down payment. We have enough to not have to pay the CMHC insurance.
The question is whether we pour as much into the mortgage as possible.
Interest rate on deposits is very low so it seems to make sense to put it into the mortgage. I'm also not a equities trader so haven't examined high return options.
Basically, I guess I'm asking what the conventional (or other) wisdom is around paying back a mortage. Pay off as much as possible with everything you have (and keeping a small buffer of??) or keep investing elsewhere.

If the latter should I put a deposit on eg a Yaletown property and build it up through rent?

Views appreciated!

V

JonboyE

IMO keep six months living expenses liquid. A redeemable GIC in a TFSA (if you have room) or something like that. Pay the rest off the mortgage.

vanity

Thanks, Jon, very helpful. How much in the TFSA would you recommend.
I also haven't got an RRSP. Is it worth looking into that and depositing now so I can use that for the downpayment? I haven't looked into any of these products.

Mike Gas

Vancouver hoeing market just like Calgary and Toronto look like a big bubble waiting to pop.
Now that oil has poped may not be far away be careful.

xxdb

Keep enough aside to cover mortgage payments for at least six months in case there's a recession. That's all I can offer. Good luck.

Zap0ne

Many of the big name insurance co. have a disability and job loss rider to add to your policy. I think that the premium depends on your age and also the amount outstanding on your mortgage. Might be worth looking.