Quote:
Originally Posted by Slava
Are there a lot of NINJA loans and subprime in general here that have been securitized and passed through the system?
|
Sub prime loans were loans that reset at market interest rates after a 3 to 5 year period unlike the typical US mortgage rates that had locked in interest rates for 30 year terms.
Where could you ever get a locked in interest rate in Canada for 30 years? That's correct, never. By definition all mortgages in Canada are subject to market interest rates at renewal term, typically 5 years on the long ones.
As for NINJA loans, I know of a live-out nanny and a girl who works at Superstore, both with their name on a 300K mortgage in Airdrie. Its a 40 year mortgage, they didn't have to put anything down. Cheaper than rent I guess. Had to talk sense into my brother-in-law who was approved 2 years ago for a 330K mortgage, he is (was) roughneck making +/-75K per year and she works a daycare at $28K per year.
Several people out of work, are those now NINJA loans?
Banks in Canada have also been selling loans you know. Just how thorough are they when there is a quick buck to be made on a government guaranteed mortgage.