Earlier quoted context omitted.
It sounds like the mortgage advisor encouraged you to borrow a larger sum, so that she/he could get a larger commission. There's no need to keep that much money in the bank just in case you lose your job and can't pay your mortgage. Most lenders (at least where I'm from) will arrange a payment holiday if you tell them you've lost your job. After all, they benefit by earning more interest whilst you're not making paym…
1 year in the bank (CD/savings) is for multiple reasons. Mostly it's for that really nasty scenario where there's a major recession leading to household job loss, when it can be particularly hard to find an equivalent replacement salary. And cash equivalent is important because selling assets in a down market is doubly expensive. Worse is a down market may make the mortgage lender even more likely to foreclose in the…
Re: “I thought I could ship at least 700 units to stay in business”
#341I don't know if these exist in other countries, but some banks in the UK offer an 'offset mortgage', where any balance in a specific current account at the same bank deducted from the loan amount when calculating interest. The last time I looked, they were a little more expensive than regular mortgages, but would be worthwhile for someone who keeps 6 months or more of mortgage payments in their current account.