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Originally Posted by jackmeister
Yea I do know quite a bit of the sub-prime mortgage stuff since I went through my undergrad reading about it everyday and doing a project on it. But there are differences in the markets between Canada and US and in the situations between mine and other people.
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This is why I think university is a sham.
Come on, if you researched this subject you'd know that subprime was caused by:
- people buying more than they can afford (aka you)
- people taking out loans to finance downpayments (aka you)
- people taking mortgages with rates that will go up, yet they cannot afford on paper when rates go up (aka you)
What do you do in 5 years if rates are much higher and you cannot make the TDS or GDS? I know you're not maxing out the $350K pre-approval, yet even at $300K you're not leaving a lot of wiggle room considering you've borrowed $150K from your parents.
You are correct in that the US and Canada are different, we have recourse mortgages, the US does not. US buyers could walk away from bad mortgages and leave the debt with the bank. Canadians cannot. If for some reason you cannot renew, and housing prices drop, the bank is allowed to take back the house, sell it at a loss, and sue you for the difference. If the bank doesn't do that, CHMC will.
Quote:
Originally Posted by jackmeister
If they forget, I wouldn't even pay them back! lol
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LOL I wish I had parents that wouldn't miss $150-200K.