Aggressive Lending In Canada – “My family was severely bugged by mortgage brokers recommending us to get a fatter mortgage.”

Easy lending has fueled the price run-ups in Vancouver RE. This relevant anecdote comes from dimon at Vancouver Condo Info 2008-04-29 15:04:35

“I’ve lived in Canada since 2001. When we started looking for a mortgage, the rules were quite strict. With our verified!!! dual income we could not get mortgage more than 200k. As first home buyers we needed at least 5% downpayment. Within this price range we could not find a suitable SFH, so we went for a townhome in decent area.
To my big surprise, just a year or so later, my family was severely bugged by mortgage brokers and financial advisors recommending us to get a fatter mortgage. And even our income did not change much, we were offered 400+k mortgage. I now feel lucky I did not go for it.”

2 responses to “Aggressive Lending In Canada – “My family was severely bugged by mortgage brokers recommending us to get a fatter mortgage.”

  1. Hopefully this will not be past soon. I am working as a Vancouver realtor and I am following also trends on the US market. It became a problem at US market because of the quite risky mortgages offered by brokers also to not such a creditworthy persons. Personally I think that banks should be more careful in order to prevent some consequent crisis.

  2. The mortgage plans can be very misleading if one doesn`t own enough information about. The foreclosures have never been as frequent regarding the Vancouver real estate market as recently. People tend to believe in everything which can bring their closer to their dream of homeownership. I`m visiting this site for the first time and I liked very much this anecdote.

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