Canadian Mortgage Concerns: Banks

I’ve often heard in business that once is a coincidence, but twice is a trend.

Canadian banks have performed quite well both during and after the credit crisis of 2008/2009 and despite a low interest rate environment have had robust mortgage numbers for a number of consecutive years. We’ve all heard Canadian politicians touting the health of the Canadian banking industry but I have to wonder at which point problems hidden in the closet might decide to come out for one or more of our prized banking institutions.

Recently I was surprised recently by two occurrences, in my hometown of London Ontario, when two peers of mine went to get both their pre-approval and final approval for mortgages for their first home purchase. Both individuals are under thirty, have dual modest incomes and are looking to purchase their first home with less than 10% down.  Read More…

This article has 4 Comments

  1. Rico Winkleman

    Because it was at the same bank at two different locations one can’t help suspect that this is a common practice there. Not sure if i should be concerned or go apply for a loan 😉

    It’s either TD or CIBC.

  2. Arsenio

    I wonder if these two individuals have existing account at this bank. If they did it wouldn’t be difficult to pull up a history and based on that decide if a loan was acceptable. The article fails to mention this.

  3. Dominik Coles

    This is what got U.S. into so much trouble — not doing due deligence on the income checks to these new home buyers. By allowing them to get mortgages with absolutely no background check on their income history is not good.

  4. Rickie

    Canada was all the talk at the G20 and how it was able to pretty much avoid the credit crisis but i agree some of the fundamentals don’t add up and although i doubt we will experience the same level of disaster that the americans felt we just might be in for a rude awakening.

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