Interesting headline that came up on BNN and in the the front page of the Globe and Mail this morning. Apparently the banks are issuing loans without understanding the risk, this is significant.
"Canadian banks allow foreign clients with no credit history, including students, to qualify for uninsured mortgages without proving the sources of their income – a practice that exempts non-Canadians who have money in the bank from the scrutiny domestic borrowers face when buying a home or an investment property."
“The bank doesn’t understand what the risk is,” Ms. Duhaime said. “If the bank were to start from scratch, the outcome might be different. They might not issue the mortgages.”
http://www.theglobeandmail.com/real-...ticle31869946/