Buying a condo can be an exciting step towards owning your own space, and at Sessa Real Estate, we're here to make that journey as smooth and enjoyable as possible. One of the key aspects of purchasing a condo is the down payment. This initial payment is a percentage of the condo's total price and is usually required to secure a mortgage.
At Sessa Real Estate, we understand that coming up with a down payment can seem daunting. That's why we're committed to helping you understand your options and find solutions that fit your financial situation. Whether you're a first-time buyer or looking to invest in a new property, our team is here to guide you through the process.
We offer advice on various down payment assistance programs and provide tips on how to save effectively. Additionally, our experienced agents can connect you with trusted financial advisors and mortgage lenders to ensure you get the best rates and terms.
Our goal is to take the stress out of buying a condo, so you can focus on finding the perfect home. With Sessa Real Estate, you're not just making a purchase – you're making an investment in your future. Let us help you turn your condo dreams into reality.
At Sessa Real Estate, we understand that coming up with a down payment can seem daunting. That's why we're committed to helping you understand your options and find solutions that fit your financial situation. Whether you're a first-time buyer or looking to invest in a new property, our team is here to guide you through the process.
We offer advice on various down payment assistance programs and provide tips on how to save effectively. Additionally, our experienced agents can connect you with trusted financial advisors and mortgage lenders to ensure you get the best rates and terms.
Our goal is to take the stress out of buying a condo, so you can focus on finding the perfect home. With Sessa Real Estate, you're not just making a purchase – you're making an investment in your future. Let us help you turn your condo dreams into reality.
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00:00Folks buy with 5% down let's talk about that and then get into the latest home prices and insights
00:06for condos across the GTA for week ending May the 8th 2024. I saw an ad on social media by a realtor
00:15that said buy with 5% down and I'm thinking about that ad I saw wow you know you can only buy with
00:23a minimum of 5% down up to $500,000 so there's not that many situations in the GTA where you
00:31could buy something for $500,000 so right away that ad would pertain to I don't know 1% less
00:39than 1% of all properties being sold so I'm looking at that and I'm thinking okay well what
00:45if you could buy for 5% down what if it's just let's just talk about buying with the absolute
00:51minimum down because once you get over $500,000 say between $500,000 to $1,000,000 and if we're
00:57talking condos that's the majority of condos out there between $500,000 to $1,000,000 I'm not sure
01:04what the percentage is but by far the majority of condos in the GTA will be within that price
01:09point you can buy with an overall less than 10% down the question is should you and lots of people
01:17do it they don't always know the risk I can tell you there are people today that are in trouble
01:24we've talked about it often on the show they have to sell their condo their house and they're stuck
01:30there the the value just isn't there and they bought it the last one two three years something's
01:38changed in their life and they can't afford their mortgage payments anymore so they gotta sell well
01:44those people that bought within the last few years all they've been paying is interest their
01:49mortgage payment has been almost all interest no equity no principle is being paid down and if the
01:56value of their home has dropped well it's now gonna sell for less than what they bought it for
02:02and if they paid the absolute minimum possible down payment well there's a good chance that
02:09what they sell it for is actually less than what their mortgage is this is the problem we've been
02:14speaking about many situations there are many stories we've talked about this and you see it
02:19out there and many of these people are the ones that got into the market with the just scraping
02:26by the bare bones minimum and and I know lots of people have done it that way and for many it's the
02:32only way to get into the market otherwise you wait another two years three years four years
02:36where prices may be even higher and you're priced out I get it why people do it what I don't get
02:42necessarily is that they really don't understand the risks involved with that they never told
02:48they don't understand that the potential you know the whole story of prices only go up well
02:53the last few years we've seen history that isn't the case sometimes prices do come down and life
02:58is life things happen expenses creep up on you somebody loses a job all sorts of things happen
03:05and those people that paid with the absolute minimum and some of those made it worse by borrowing
03:12private money from family to help that they're also paying back it's like you're stuck you're
03:19absolutely stuck and you're gonna sell and then you can't even cover your mortgage those people
03:26I find and this is an ugly truth about selling at a loss those people that put more money down
03:33say 20 percent for example and the market moved and the market is not so much in their favor and
03:40they're selling less for what they're buying the only person the only family that would sell at a
03:46loss like that is someone that absolutely has to it's not a fun thing to do so if you are forced
03:54to sell you're gonna sell you got no choice well if you put more money down there's a buffer in
04:00there where at least your mortgage gets covered and you can just walk away live to fight another
04:07day but there's other people that put the bare bones minimum as soon as the market moves they're
04:12underwater their mortgage is actually higher than what they're going to sell their house for so to
04:16close they actually got to come up with money from somewhere else and they can't because if they could
04:21have they probably would have continued on with their mortgage payments or you know bought some
04:26more time to find and replace the job that they lost for example they can't and this is where
04:32people get stuck and have no choice but to walk away let the bank take over which is a way way
04:37worse situation I'm not saying because of the down payment you put down that's larger than the bare
04:43bones minimum it's a good situation to be in that you can sell for less than what you bought your
04:49home for but at least you have options and that's the ugly truth about real estate that sometimes
04:54nobody talks about there are people selling right now that are biting into their equity to sell they
04:59they recently put down 20% and and now they're coming out of it because something changed in
05:05their life that was unpredicted and you know not calculated for and how can you calculate for
05:11everything but it's an unforeseen situation they can't afford to keep their house but they have
05:16options better options than say the bank taking over or whoever their lender is going into power
05:22of sale so look there are opportunities and situations and even people advertising buy for
05:29minimum minimum down and I could see how that's attractive because it's really tough to get into
05:34the market but it's not always a smart move and I'm not telling you what to do but if you're
05:39going to go that route understand the consequences if things go sideways if the market moves south
05:46just a little bit you're underwater your mortgage is higher than your home's value and you've got
05:52very little options if you're looking to sell or refinance or whatever it is that can help you
05:57the less money you put down the harder it is to maneuver and fix or save your situation later