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Project requiring no down payment no slam dunk

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Real Estate Professional | 27 Jan 2016, 08:15 AM Agree 0
Not so fast: the “no down payment” condo project being reported has not yet been given the go-ahead by CMHC, according to the Crown Corporation
  • | 27 Jan 2016, 11:42 AM Agree 0
    This is a scary proposition! No matter how they disguise the down payment (with a price reduction to the purchase price). Does that mean that any negotiated price reduction off a list price can be applied as a Downpayment? Don't follow a disasterous example! What about (equally ridiculous) NINJA mortgages? GREAT idea! (Not)
    Any Zero money down program is begging for failure! Buyers must have some "skin" in the property to encourage personal responsibility. It is irresponsible of CMHC to consider such programs. We (Canadians) must maintain the fiscal responsibility of the Canadian mortgage/real estate industry and avoid the silly programs that crashed the entire U.S. Market in our very recent past.
  • MRH | 03 Feb 2016, 09:18 AM Agree 0
    100% agree. Nobody should be allowed to buy real estate with no money down while having a mortgage backed by a crown corporation i.e taxpayers on the hook. I don't care what the situation is. You save up for your down payment - that is life. If you can't, then you keep renting. Ownership is not a right. The fact you only need 5% down is a gift - which I was able to take advantage of 20 years ago. And what does 8% below market value even mean?? That is a total joke. Does the developer overprice the units at $325,000 and then sell them for $300,000 claiming that is 8% below market value? What kind of bogus scheme is this?
  • Bob K | 09 Feb 2016, 07:35 AM Agree 0
    This proposal appears to have the ingreidients for financial flatlining, by some buyers, down the road. Instead, because saving the downpayment, has become increasingly difficult, particularly for first timers, why couldnt the government offer an incentive program based on a buyers good credit score, with 5 per cent down, forgiving 2 percent, upon completion. Thus we are rewarding the right "stuff", being good credit, and steering away from a society stuck in tenant mode, for what seems an eternity.
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