Quote:
Originally Posted by pseudoreality
That is interesting and makes sense. It bugs me how banks push the high ratio mortgage and are less likely to give you a deal if you actually have a decent down payment. They should shoulder some of the risks when it comes high ratio defaults as well. I also read there was a proposal to make the banks pay the premium, and not just have the borrower roll it into the mortgage. I'm sure the bankers will fight this.
|
Banks push high ratio mortgages because they are CMHC insured. Those mortgages are really easy to sell and for a premium, backed by the Feds. Why do a mortgage where there is risk to the bank?
Like I said earlier - after +/- 2002 your banker went from the cheapest person you knew to the loosest. Many people have also bought large shacks and have been talked out of large down payments and into CMHC insured mortgages prior to the 1.0 million cap that was put in. Many people buying the mid range 600K to 900K with 10% down or less. "Keep your cash and invest it, money is cheap"