The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Cashflow vs. Equity-- Good idea to use more leverage?

Idea threads

EvanOkanagan

Gold Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
380%
Aug 2, 2013
579
2,198

JAJT

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
549%
Aug 7, 2012
2,970
16,306
Ontario, Canada
Thanks, this was some great info.

Quick question though - is this article suggesting it might be better to take on the CMHC insurance fees in favor of paying as little as possible? Or would hitting that 20-25% and not a penny more be a generally better idea whenever possible?

I've done a bit of reading so far and everything seems to be pointing at putting 20% down in most of the examples, presumable to avoid the CMHC cost.
 

EvanOkanagan

Gold Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
380%
Aug 2, 2013
579
2,198
Thanks, this was some great info.

Quick question though - is this article suggesting it might be better to take on the CMHC insurance fees in favor of paying as little as possible? Or would hitting that 20-25% and not a penny more be a generally better idea whenever possible?

I've done a bit of reading so far and everything seems to be pointing at putting 20% down in most of the examples, presumable to avoid the CMHC cost.

Great point.

I agree 100% that if you can put down 20% (minimum to avoid CMHC fees in Canada--which are now as much as 4%!), definitely do it. Not only do you avoid paying that premium, but it also will increase your cashflow considerably, as you can typically spread the term from a 25 year amortization up to a 30 year.

I do this on all purchases whenever possible to avoid those high fees and up the cashflow.

This is in line with an idea of the post that "you can always pay more, but you can never pay less" (when it comes to the mortgage payments).
 

SteveO

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
456%
Jul 24, 2007
4,228
19,294
This is one way. Although, in my opinion both are less than fastlane based on the examples.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top