Home owners mortgage insurance canadain Gov billion dollar a year scam

Randy · Post by **Randy** » Wed Jul 04, 2007 6:59 pm

If you don't have 25% down payment for the purchase of your home you are required to get mortgage insurance on a mortgage of 300,000$ mortgage insurance = approx 9,000$. Which is added to your mortgage payments. If you decide to sell your house after 2 years you can say goodbye that 9k.

something to consider when buying in Canada> Your insurance covers the lender not you if you default. The insurance is for 100%of the value of the house, whereas most Americans insure 25 percent of the value of their home. That is because even in the worst housing market, no home will lose 100 percent of its value.

canadians easy going attitude is now expected to be bend over and take it.

I am getting sick of it myself.

read more > http://www.trilliummortgage.com/cmhc2.asp

nightowl · Post by **nightowl** » Wed Jul 04, 2007 8:14 pm

funny and Ironic thing is that when I tried getting that insurance, they refused me because of my diabetes...said I was too much of a risk.

Randy · Post by **Randy** » Wed Jul 04, 2007 8:42 pm

nightowl wrote:funny and Ironic thing is that when I tried getting that insurance, they refused me because of my diabetes...said I was too much of a risk.

thats sick, absolutely ashamed of our Gov

maybe with that 8 billion surplus they will dump some money into diabetes,,, umm yeah

nightowl · Post by **nightowl** » Wed Jul 04, 2007 9:02 pm

the whole insurance thing is a scam. Just like the insurance for medical care in the US.

YARDofSTUF · Post by **YARDofSTUF** » Wed Jul 04, 2007 9:07 pm

nightowl wrote:the whole insurance thing is a scam. Just like the insurance for medical care in the US.

Dont forget car insurance.

Randy · Post by **Randy** » Wed Jul 04, 2007 9:13 pm

YARDofSTUF wrote:Dont forget car insurance.

Yeah CDN gov> 32 million surplus for the province of british columbia..hmmm lets put that into offshore investments

RoundEye · Post by **RoundEye** » Thu Jul 05, 2007 1:18 am

Randy wrote:....canadians easy going attitude is now expected to be bend over and take it.....

Welcome to the "pants around your ankles" club. Outside the loss of life after Katrina, the insurance cost is the worst nightmare of all. People can't rebuild because banks won't loan money to people who can't get insurance. The insurance issue is a really hot item in the news around here, everyday.

Insurance companies WILL NOT write policies in some areas. If you want property along the coast in Mississippi, you better be ready to pay for it in full, in cash. And be ready to eat that house if something bad happens because your not going to find anyone to insure it.

People think everything is fine and dandy around here because it’s not world news anymore, but it’s not. It still makes the news when an post office reopens, or a neighborhood get’s electricity back and neighbors have taken it upon themselves to make street signs, such things as Stop, One Way and street names. To this day, almost two years, later we have a warehouse full of unclaimed dead bodies, many still unidentified. It also makes the news when they open a new car crushing plant to demo all the cars flooded by the storm. Yep, two years later and they are still trying to get rid of the flooded cars.

Read This Link

…. Katrina killed Green's 73-year-old mother, Joyce, and 3-year-old granddaughter, Shanai, and washed away his house. Now, with insurers jacking up rates or even refusing to issue policies along the Gulf Coast, Green's difficulty in obtaining homeowners insurance is another setback in his struggle to rebuild his home and reclaim his life….

…. Owners Penelope and Keith Courvelle say they can't rebuild their seafood business because they can't afford the insurance they'd now face: $13,000 a year, about seven times what they paid before Katrina. "If I could break even, I would already have rebuilt this business," says Keith, 50….

…. There was a $1 million increase in our premium per year….

I feel your pain man, but don’t even get me started on friggen car insurance !!!

jeremyboycool · Post by **jeremyboycool** » Thu Jul 05, 2007 1:36 am

I don't think I would move to Canada, It would be like moving across the street.

Randy · Post by **Randy** » Thu Jul 05, 2007 3:23 am

RoundEye wrote:Welcome to the "pants around your ankles" club. Outside the loss of life after Katrina, the insurance cost is the worst nightmare of all. People can't rebuild because banks won't loan money to people who can't get insurance. The insurance issue is a really hot item in the news around here, everyday.

Insurance companies WILL NOT write policies in some areas. If you want property along the coast in Mississippi, you better be ready to pay for it in full, in cash. And be ready to eat that house if something bad happens because your not going to find anyone to insure it.

People think everything is fine and dandy around here because it’s not world news anymore, but it’s not. It still makes the news when an post office reopens, or a neighborhood get’s electricity back and neighbors have taken it upon themselves to make street signs, such things as Stop, One Way and street names. To this day, almost two years, later we have a warehouse full of unclaimed dead bodies, many still unidentified. It also makes the news when they open a new car crushing plant to demo all the cars flooded by the storm. Yep, two years later and they are still trying to get rid of the flooded cars.

Read This Link

I feel your pain man, but don’t even get me started on friggen car insurance !!!

wholey phuck!!

trogers · Post by **trogers** » Thu Jul 05, 2007 3:30 am

My advice in home purchasing is to look for a property with a price that we need only 65% financing with 35% downpayment. This will avoid mortgage insurance and also possible excessive negative equity value should the real estate market faces a downturn.

This would also lower our long term financial burden and lesser sleepless nights.

Randy · Post by **Randy** » Thu Jul 05, 2007 12:37 pm

trogers wrote:My advice in home purchasing is to look for a property with a price that we need only 65% financing with 35% downpayment. This will avoid mortgage insurance and also possible excessive negative equity value should the real estate market faces a downturn.

This would also lower our long term financial burden and lesser sleepless nights.

35% of 300,000 = 105,000 which would take 9 years to save if I saved 1000$ a month. but then consider after 9 years the house price would prolly be 600,000 which would mean i would need another 105,000

Spammy · Post by **Spammy** » Thu Jul 05, 2007 1:06 pm

Actually it is a bs insurance, but you can easily avoid it by doing an 80% 1st mortgage followed by a 5% 2nd Mortgage.

I refuse to sell a loan to a home owner who has to pay PMI- Private Mortgage Insurance.

Wait, I read that again. You mean you guys do not have to carry home owners insurance at all or just over an ltv of 75% Or are we talking home owners insurance plus private mortgage insurance?

Randy · Post by **Randy** » Thu Jul 05, 2007 4:10 pm

Spammy wrote:Actually it is a bs insurance, but you can easily avoid it by doing an 80% 1st mortgage followed by a 5% 2nd Mortgage.

I refuse to sell a loan to a home owner who has to pay PMI- Private Mortgage Insurance.

Wait, I read that again. You mean you guys do not have to carry home owners insurance at all or just over an ltv of 75% Or are we talking home owners insurance plus private mortgage insurance?

Homeowners insurance is a must. I am talking about mortgage Insurance which is a gov scam read the link in my first post.

trogers · Post by **trogers** » Thu Jul 05, 2007 7:53 pm

Randy wrote:35% of 300,000 = 105,000 which would take 9 years to save if I saved 1000$ a month. but then consider after 9 years the house price would prolly be 600,000 which would mean i would need another 105,000

Say you already have 20% for a $300,000 - $60,000.

Then you should look for a home that costs only $180,000 instead of one that is selling at $300,000.

Start small and start young and gradually upgrade with increase in earnings and savings.

Izzo · Post by **Izzo** » Thu Jul 05, 2007 8:00 pm

trogers wrote:Say you already have 20% for a $300,000 - $60,000.

Then you should look for a home that costs only $180,000 instead of one that is selling at $300,000.

Start small and start young and gradually upgrade with increase in earnings and savings.

That's what he's doing .....

Randy · Post by **Randy** » Fri Jul 06, 2007 1:21 am

trogers wrote:Say you already have 20% for a $300,000 - $60,000.

Then you should look for a home that costs only $180,000 instead of one that is selling at $300,000.

Start small and start young and gradually upgrade with increase in earnings and savings.

bwahahaaha 180,000 no such house!.... mobile home .. yeah but then you cant get a mortgage for a mobile home without having 25% Down payment so your still looking at 50k down

trogers · Post by **trogers** » Fri Jul 06, 2007 2:16 am

Randy wrote:bwahahaaha 180,000 no such house!.... mobile home .. yeah but then you cant get a mortgage for a mobile home without having 25% Down payment so your still looking at 50k down

That is why I used the word 'home' and not house. I am not familiar with the real estate market in Canada, but I believe there would be an assortment of residential developments aimed at different income segments. The high end would probably be penthouses in a high-rise or a spacious landed property with numerous bedrooms. At the other end would be studios and single room apartments.

What I am trying to say is that we should not fall for the marketing strategy of the financing industry by committing an arm and a leg to a property that we need to struggle to maintain - mortgage loans to amounts of 80-90% of appraised value. The premium for mortgage insurance reflects the level of loan defaults of the market and acts as an indicator.

By choosing a less expensive (relative to your income) property to call home would be the first wise decision and you avoid paying large amount of interests and avoid paying for the insurance.

lonewolfz28 · Post by **lonewolfz28** » Fri Jul 06, 2007 6:08 am

trogers wrote:That is why I used the word 'home' and not house. I am not familiar with the real estate market in Canada, but I believe there would be an assortment of residential developments aimed at different income segments. The high end would probably be penthouses in a high-rise or a spacious landed property with numerous bedrooms. At the other end would be studios and single room apartments.

What I am trying to say is that we should not fall for the marketing strategy of the financing industry by committing an arm and a leg to a property that we need to struggle to maintain - mortgage loans to amounts of 80-90% of appraised value. The premium for mortgage insurance reflects the level of loan defaults of the market and acts as an indicator.

By choosing a less expensive (relative to your income) property to call home would be the first wise decision and you avoid paying large amount of interests and avoid paying for the insurance.

Which indirectly addresses the looming sub-prime mortgage collapse: http://articles.moneycentral.msn.com/Sa ... gBusy.aspx
Not to mention the folks getting hammered by the adjustable rate mortgages for homes they had no right considering in the first place based on their projected income.

We had a low fixed rate mortgage and still got hammered due to local depressed prices. I'd hate to see the finances of those that took the adjustable rate mortgages offered back in the late 90's.