Breaking all the rules

I don’t think I really follow financial rules all that well. I mostly just muddle along. Take, for instance, this rule: always buy a house with 20% down.

In Canada, that’s a big deal because it means you don’t have to pay mortgage loan insurance. For our house, our mortgage loan insurance cost about $15,000.

This is not our house. But it’s really cute!

This is something that we did not do, and it worked out for us just fine. Would I have preferred to not pay the mortgage loan insurance? Of course. I’m not an idiot. But we entered the housing market in our area when it was really slow, and prices were a bit depressed. We bought our house in February and definitely got a deal because of that.

We also bought at a time that had historically low interest rates.

So our formula for success looked a lot like this:

low price + right time of year + low interest rate = one heck of a lucky break

We still have a decent mortgage that we’re paying down (still at those incredibly low interest rates, thank you very much!) but our house has increased in value by well over $100,000. This may seem like a good windfall, but honestly, if we were to sell our house today, we’d struggle to find a place to live because housing has become so expensive. So we’re just content to sit in our sweet little place and chip away at the mortgage. It’s everything we want and we have no plans to move.

And while I don’t regret it, I’ll definitely not be buying a house without 20% down again. I can’t imagine having to pay mortgage insurance. 😉

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