“My girlfriend got approved for a $270,000 mortgage and she only has $250 in the bank.”

kim on greaterfool.ca 2 Apr 2011 at 1:48 pm“Are people still able to buy with nothing down? My girlfriend got approved for a $270,000 mortgage and she only has $250 in the bank. Not sure if parents helping out. Funny how she shouldn’t be renting let alone buying. How do people with no money qualify? I can only imagine the tens of billions lent out to those without money. Canada housing must be a house of cards.”

5 responses to ““My girlfriend got approved for a $270,000 mortgage and she only has $250 in the bank.”

  1. if true, this is hilarious – the bank is practically clamping down on me for having NO money. blood from a stone, i tell them, and it just gets worse.

    which bank is this? since i can’t pay the rent i’ll have to find new digs 😉

  2. Not sure if this has been posted on here before.

    The CMHC: Canada’s mortgage monster
    The CMHC is a driving force in the housing market. But critics warn its policies could fuel a U.S.-style meltdown.

  3. Two friends of mine who are both broke as a joke bought property last year.

    Friend #1 bought a condo for a little under $200,000 in Victoria with a down payment from a credit card and moved in with so little money he couldn’t fix his broken stove for 6 months.

    Friend #2 bought a dumpy townhouse for $350,000 in Victoria and once again used the credit cards to do it. He’s worked for the government for a little more than a year and his wife is unemployed. 2 kids, #3 on the way. Maxed out credit cards once again and they can’t afford to fix the fridge. But the bank thinks they can afford to be $350,000 in debt. WTF?

    They can barely make ends meet with their 5% down, 35 year mortgages at record low interest rates. How on earth will they manage when rates normalize and why do banks think they’ll make their payments on time every month through the year 2045? Both of these people have sketchy job and credit history.

    And these are just a couple of examples off the top of my head. If you surveyed Victoria and Vancouver readers in the 25-35 age range I’m sure you’d get swamped with hundreds of similar stories. I have no clue what these people are thinking but I know for a fact they are just scraping by right now and would be devastated with a 1-3% interest rate increase.

    Oh, and retirement plan? Ha ha ha ha ha ha! What retirement plan? There’s no money for trivial expenses like retirement. It’s all about the house. Or in these cases it’s all about the condo and townhouse.

  4. Pingback: Subprime, Overextended, Whatever You Want To Call It – “Two friends of mine who are both broke bought property last year.” | Vancouver Real Estate Anecdote Archive

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