Saturday, November 10, 2007

The Magestic Loan Goddess of Calgary

The mysterious and powerful loan goddess summons the power of credit to help shelter mortals. We read from the passage of testimonials:

"Thank you Rae for all your wonderful help! You made the process of obtaining our first mortgage a delight. We can now afford our dream home."
Where in the past mortals used "documented incomes" to afford homes, this can now be conjured by the loan goddess.

For entrepreneurial Canadians like freelancers, consultants, commission sales professionals or business owners, keeping taxable income low is just plain smart. And that means your T4 should not be an indicator of your ability to carry a mortgage.

With good credit, we’ll qualify you based on the income you tell us you make. This accessible mortgage approval process works for those who worry about proving exactly how much they earn.


Anonymous said...

What are you worried about? Only 5% of all Canadian mortgages are this dodgy. Can't possibly have any negative consequence whatsoever!

Ryan said...

I hope that's sarcasm! During the bubble here in Calgary over the last few years, it's been shown using statistics obtained from CMHC and other real estate sources that at least 20% of mortgages during this time-frame were of the subprime variety. Bow down to the oh so wise Loan Goddess!

BearClaw said...

Yup, that 5% statistic a been thrown around for almost a year now. I saw it in print many times but i could not determine the exact definition of subprime and the time period.

I know that 40 year amortization and 5% down are NOT considered subprime and do not show up in the 5% figure. Even these "stated income" loans are classified as Alt-A and the borrower could have a high credit score so they may not even count?

Google Canada "only 5%" subprime

Anonymous said...

Yes it was sarcasm. I really enjoy this new blog. Please continue. Will stop being anonymous when I think of a cool name.

I have friends( teacher young couple, 110k pa) who bought in July. They were somehow convinced not to "waste" their modest downpayment of ~15k on the mortgage.

They also told me about their mortage broker suggesting investment property in Sask. as the next step.

So now they have a house, and still take trips to Hawaii, LasVegas etc. The plan is to sell in 2yrs and move to some Rural loc in AB with their equity. (Ha)

If reasonable people such as my friends can be coerced into such action, what is everyone else doing???