Quote:
Originally Posted by Cowboy89
If the banks had to go naked on a 5/35, they wouldn't even lend it out to pretty much everyone that qualifies at those levels. So goverment interference is actually what makes a 5/35 mortgage possible, not unfettered capitalism.
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This is a fair enough point, and you're certainly right that a non-insured 5% mortgage would be hard to get. Of course, the government won't allow the banks to lend anything <20% down without gov't insurance, so it's hard to say what the market would look like without the gov't involved.
It's also a bit hypocritical of the gov't to say "we're guaranteeing these mortgages so Canadians can by houses" on the one hand, and "it's irresponsible to be borrowing that money" on the other hand.