Description: It just doesn’t seem to make sense. Savers say they are being punished when it comes to getting that first mortgage. In the strange world of finance, it appears that home buyers who put down less than 20% of the house value are getting better interest rates than those who have been socking away their cash to provide a large down payment. So the poor savers are earning close to zero while they save their money and then they are apparently getting punished for finally borrowing when they make their purchase. It’s a funny world folks.
Date: March 9; updated March 10, 2017
1) What surprises did you have in reading this article?
2) Were you aware that the taxpayer essentially insures those mortgages with less than a 20% downpayment?
3) Are you planning on buying a home after graduating? What is your savings strategy?