Friday, October 06, 2006

No Down Payment Mortgage At Scotiabank

Check this out: Scotiabank is offering no-money down mortgages.
According to analysts, Scotia's entry into no-money-down mortgages gives it a unique product in the ultra-competitive mortgage market -- although the other banks could quickly follow its lead. For Genworth, this is a chance to seize market share on the insurance side, which for years was dominated by a single player: the government-owned Canada Mortgage and Housing Corporation.
I don't think this is a huge deal. Downpayments have been very low anyway, and if a downturn hits the difference between a 5 or a 10% downpayment vs a 0% downpayment isn't huge.

If we start getting neg-am pay-option no income no assets no doc voodoo mortgages, then that's something to worry about. Zero down? Dumb for Scotiabank, but I don't think it will have a big impact. Isn't their timing a bit off on this?


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