Oops, that was Canwest stock price. 45 cents.
The story is here somewhere I'm not saavy enough to embed or link it. Go find it.
...falling prices and lower interest rates are creating a perfect storm for homebuyers. As Vindu Surri reports some lenders are even sweetening the deal to help you cash-in on the cooling economy
"..Its almost like a free downpayment, where the lender actually supplies the borrower with the downpayment for the mortgage. Interest rates just a slight bit higher maybe 1 point 1 and a half points higher than normal and that downpaymnet is forgivable after 5 years."
ReporterAdding 1 to 1.5 to the rate over 5 years will end up costing 5.0-7.5% (neglecting compunding interest) so assuming the downpayment is 5% it is certainly not free.
The free downpayment is unlike the zero downpaymnet which was eliminated last year.
Also the mortgage broker in the story reminded us of a very important fact
Canada Mortgage and Housing and there are some other mortgage insurance institutions that will protect the lender if someone defaults on their mortgage.
Looks like mortgage originators are able to shift the risks of "innovative" mortgage products. hmmm... sound familiar? Volker had it right (paraphrased) The best innovation in the world of finance was the automatic teller.