July 14, 20263 min read
The simple version is easy; the mortgage-specific details are where the answer becomes valuable. Using every dollar for the down payment can leave a new homeowner financially exposed. A stronger plan includes closing costs and a cash buffer after the keys are handed over.
How the mortgage math works
Here is what matters most:
- Set aside money for legal fees, land-transfer tax, adjustments, moving and any applicable inspection or appraisal costs.
- Plan for immediate purchases such as window coverings, appliances, locks and basic repairs rather than putting them on high-interest credit.
- Keep an emergency fund that can cover unexpected home expenses and a period of reduced income.
- If you choose a larger down payment, compare the benefit with the value of keeping some liquidity after closing.
Your ideal down payment is the one that supports both mortgage approval and a stable first year of homeownership.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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