How much of a down payment should I use?

by Francis
(Thunder Bay, Ontario)

I am currently in the process of buying a third property for $150,000 with a 20 percent down payment.

With that much of a down payment I will be liquidating pretty much all of my cash on hand.

Should I look for a different financing situation where I can get away with a lesser down payment?

Any advice and knowledge would be greatly appreciated. Thanks a lot!

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May 29, 2015
RE: How Much of a Down Payment Should I Use?
by: Tom

Thanks so much for the question.

We would definitely look for a way to get access to some cash for emergencies. We've definitely stretched ourselves in the past but it's not advisable. Have a few months worth of carrying costs and some money for unexpected repairs or maintenance. If that means finding another source of down payment, or getting access to some equity in another property via a credit line for this or something else we would do it. You never want to stretch to the max like that because if anything goes wrong you have no options and you'll panic.

Our two cents of course!

Tom

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