Now you can have a 25 year mortgage free.

[Professur]

CMHC eases rule on down-payment minimum, will permit borrowed funds

OTTAWA (CP) - Home-purchase down payments are getting easier to put together under a new policy announced Monday by Canada Mortgage and Housing Corp.

The federal Crown corporation, which previously would generally not guarantee mortgages unless buyers put up at least five per cent of the price from their own funds, is dropping that requirement.

Now there's a good idea. Slap someone who can't even make the 5% downpayment with 25 years of debt. That's one way for the Gov't to get some more cheap housing. Foreclose on these guys, and then trun their single family into a triplex. Brilliant.






Source

 

[HomeLAN]

It's got it's plusses. Therte's a program here for first time buyers that drops the downpayment to 3%, and you have to take a course in basic lending to get it. Frankly, it's the only way I could afford my first house.

In addition, you have to remember that these people gain debt service, but lose the rent expense. As long as they buy something that doesn't raise their monthly nut for housing, it's all for the good.

 

[MrBishop]

Now there's a good idea. Slap someone who can't even make the 5% downpayment with 25 years of debt. That's one way for the Gov't to get some more cheap housing. Foreclose on these guys, and then trun their single family into a triplex. Brilliant.

Source

It isn't everyone who can make the 5% right off the bat. You still have to go through the whole application thing and you still have to able to afford the payments. It's also much much smarter to mortgage yourself than get an appartment. As I see it, they're trying to help young families establish credit. Before, in order to get a good credit rating, you would have to be able to afford NOT needing credit.

You're too damn pessimistic for your own good, Prof...stop thinking about it as a 25yr debt and start thinking of it as an immoveable asset. Stop thinking that the GVT is trying some sort of scheme to create cheap housing...they would've made more money if they'd kept the system as was and kept collecting their mortgage-insurance

 

[Professur]

*sigh* That was a joke, Bish.

CMHC would lose money on every foreclosure. Duh!!

It's also much much smarter to mortgage yourself than get an appartment

Considering that I went that route while you and your missus were renting, you're preaching to the choir. But if they can't manage their money well enough to make the deposit ... what are the odds that they'll manage to cover the payments ... and still have anything left?

why do you think I bought the trailer instead of a house? To accumulate a downpayment. Sell the trailer ... cash in hand to buy the next level.


Don't forget, chummer, I'm going through this right now. I'm working with an advisor. I know exactly what numbers the bank wants to see, and which they don't. The advisor's shown me how to fudge the numbers where needed. And anyone who forgets that it's a 25 year debt needs a good shaking. It becomes an asset, over time. But for most people, the first 10 years are paying off little more than interest. Having to turn around and sell it is gonna cost them more than they've accumulated. Espescially if they have to sell it quick, to forstall foreclosure.