Quote:
Originally Posted by stone hands
We went into our appointment for our mortgage with a clear number in mind based on our budget and savings goals, 300,000. The bank said we were approved for 550,000.
Seeing as how we are rational, we said no thanks. Unfortunately most people i talk to have no idea what their monthly expenses actually are, so if the bank tells them "Yeah you are approved for x" then they think x is what their mortgage should be. It really is sad. I have thought for a long time that (not that high school kids will listen anyways) financial planning should be something taught in school so people dont ruin their lives with debt they can't afford
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When I wanted to do some extensive renos on my east van shack I asked for an extra 200,000, I was approved for, without asking, a million 'just in case' was never asked what the money was for other than me volunteering 'its for a renovation', half of its actually sitting in investments in case I get the chance to buy out my fathers lease in London, again they don't care at all. The only real question they had was how fast did I need the money.
One of my less than savy soccer mates took out money to buy himself a Porsche, the banks in Vancouver just didn't care, this was a couple of years ago and things may have changed if the market has flatlined