Quote:
Originally Posted by Potty
I find the CMHC scorecard on page 24 pretty scary. 41.8% of mortgages insured by CMHC in 2008 were to rental or high-ratio homeowners.
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That seems two odd things to throw together. What are the individual portions I wonder.
How exactly does he define high-ratio homeowners? And it's interesting that he goes from high-ratio to high-risk to "massive sub-prime mortgage scheme" in a few sentences.
In the quote it talks about 40 year mortgages and mortgages with zero down.. while those are probably unwise mortgages, and may be defined as high-ratio for CMHC (hard to tell, I can't find any details in skimming the report linked), getting a 40 year mortgage while still having to qualify at a 40% debt/service ratio is VASTLY different than giving a mortgage that goes UP instead of down to someone who is unemployed like they were in the US.