One of the worst bits of advice I ever got was "Wait until you have at least 20% to put down on a house."
Fuck that.
Put down as little as you can get away with. Make sure you have a savings buffer before buying (or you buy insurance) to cover unexpecteds, but buy property as early in life as possible.
The reason is simple: When you pay rent, you put money into someone else's pocket. When you pay a mortgage, it mostly goes back into your own pocket (even with a shitty interest rate).
@louis Here in Canada, if your down payment is below 20%, you *must* get insurance on it as well. So if you have 19%, saving that little bit more is very much worth it.
EIther way, the general advice here is if plan to stay somewhere for at least five years, you'll be better off buying something you can qualify for a mortgage on than renting
On the other hand, being forced to have insurance is retarded, since it disincentivizes insurance companies from doing a good job and being competitive since they have a semi-captive audience.
Still though. Such a big thing with no insurance is a really stupid move.
@vic @louis Ah, pardon my non-specific-ness. The mandatory insurance required here when your down payment is less than 20% is insurance on the mortgage itself. Basically the bank says you're a high-risk borrower and wants to have an extra safety net specifically on the money you're borrowing.
No matter the down payment, though, the bank will require homeowner insurance on the house to protect the collateral on the loan.
