Or they could do nothing . . .
http://www.bloomberg.com/news/2010-1...ebt-soars.html
Quote:
Originally Posted by Realtor 1
And just because 0 down isn't advertised anymore does not mean that it is not done.
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Hmm, and you can even get a 7% cash back now!
http://www.cibc.com/ca/mortgages/art...t-csh-bck.html
It's what bothers me in the whole borrowfest silliness. That the CMHC (and correspondingly, the tax payer) is ultimately backing up all these loans.
An older article, but still a good read as get close towards the same prices again when it was written:
http://www.theglobeandmail.com/repor...e317737/page1/
'SUBPRIME' DEFINED
The word subprime has created much confusion because many mistakenly believe that it refers to an interest rate that is below the prime rate - which would obviously be a less risky and more affordable mortgage.
That is not what the word means. Rather, subprime refers to the credit-worthiness of the borrower.
There is no standardized definition of the word, but many mortgage experts interviewed agree that subprime mortgages are best described as loans that include at least two of the following characteristics: a borrower with a bad credit history, an interest rate that is significantly higher than prime lending rates and mortgage values that amount to more than 80 per cent of the market value of the house.