“So it looks like I am wrong about 0/40 mortgages!”

Even some industry insiders don’t understand the terms of their own mortgages, or the products that their clients have been using to purchase RE. -vreaa

Finance Minister Jim Flaherty now says he may tighten mortgage eligibility rules. Excerpts from a consequent discussion at RE Talks, starting 21 Dec 2009 8:42 am -

MikeStewartRealtor (realtor) – “I have a 40 year amortization mortgage on one of my properties and my broker told me that is the way it will stay for the life of the mortgage. [see below -ed.] I am going to confirm this closer to the end of term, but this my understanding from him.”

MikeStewartRealtor (realtor) – “Where did you guys hear about zero down purchases here in Canada? I’ve done hundreds of deals and none have been zero down like you get in the US.”

Marco911 (mortgage broker) – “Almost all of the deals I have done were 0% down. Lenders want something but how they get that something is up to how creative the buyer/seller is.”

MikeStewartRealtor (realtor) – “I have many clients who have bought properties with lines of credit, but a mortgage was not involved. Please share with me your experiences of buying property with mortgages in Greater Vancouver with zero down. I am very interested to hear more especially these so-called 0/40 mortgages…”

silverman (realtor) – “I don’t know anybody who bought with zero down either. Even if the banks could approve such a thing, what seller in his right mind would accept an offer with zero deposit?”

MikeStewartRealtor (realtor) – “So it looks like I am wrong about 0/40 mortgages! I checked with Doug Atkinson at the Centum office attached to my office and 0/40 mortgages were allowed for a few years. He also said that my 40 amortization does not last the life of the mortgage. He also said with a 0/40 mortgages the client had to qualify for a 25 year amortization. I guess the lender would also supply the deposit.”

talking – “So, if Flaherty changes the rules on mortgages back to 25 yr max and some poor guy put 5% down with a 35 year mortgage, his mortgage will become a 25 year mortgage upon renewal? That’s gonna kill a lot of people, considering how many are already stretched at a 35/40 yr mortgage at historically low interest rates.”

One response to ““So it looks like I am wrong about 0/40 mortgages!”

  1. LOL
    what a twisted conversation!
    Does anybody really know what time it is?

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