Happy friday Dr Jin Choi, question for you when you have the chance.
I'm in a predicament where I can't decide if I should
A) put down 20 percent on a new condo purchase and have 10 percent in ETF/INDEX FUNDS/emergency (I plan on living there long term, 10 years maybe)
B) have 25-30 percent down payment on my home with the rest of the money in investments/emergency.
if I went with A) the mortgage rate would be higher and I would pay more interest long term, but I would have more money for safety or to invest.
If I went with B) I would have less money to play with, but I could slowly rebuild back my TFSA through my bi weekly pay. I was planning to DCA (dollar cost average) invest anyways. I would also have a better mortgage rate ie: (2.21 variable instead of 2.4) and I would be going towards my goal of paying off my condo.
Not sure if there's going to be another 2008 crash in the next few years like some say. In this event, if I went with A) and this event does occur... would my investments go down and would I regret not putting more of my money in my home? Also, what's your thought on the Canadian mortgage rates going up at the moment.
Please let me know when you get a chance. It's my very first home purchase, any tips and advice is much appreciated. If anyone else has something to add, please feel free.