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Should five per cent be a requirement?

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Justin da Rosa | 11 Feb 2015, 09:16 AM Agree 0
The level of mortgage debt in Canada has sparked furious debate among industry professionals about qualification standards for mortgages.
  • Ricky Titcomb | 12 Feb 2015, 07:44 AM Agree 0
    This is truly a problem not only in Canada, but here in the US. Personally, I don't know the answer, but I believe that David Lichtenstein (see: http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889) does.
  • Ricky Titcomb | 12 Feb 2015, 07:45 AM Agree 0
    This is truly a problem not only in Canada, but here in the US. Personally, I don't know the answer, but I believe that David Lichtenstein (see: <a href="http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889">here</a>) does.
  • Tralala | 12 Feb 2015, 07:46 AM Agree 0
    http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889
    <a href="http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889">here</a>
    [url=http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889]here[/url]
    (http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889)[http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889]
    [http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889](http://www.wsj.com/articles/u-s-real-estate-investors-turn-to-israel-for-cash-1423007889)
    http://on.wsj.com/16szcQn
  • | 12 Feb 2015, 09:11 AM Agree 0
    I have been in the Real Estate Business now for 7 years, and before that I was a Sr. Accountant for a Public firm, so my approach with my Buyers is cautious when it comes to how much debt they are about to get themselves into. I agree that they should have some % of a down payment, 3%, 5%, 10% I don't know if the issue really lays there. What I would like to see... that I think would solve the problem of people "loosing their homes or getting into major debt" is Buying what they can afford. The problem I see is in the approval process. When you go in for a mortgage they don't take into account "real" operating costs of ones life. So it gives Buyers , especially young Buyers or perhaps ones not so money savvy, a false sense of security, that they can afford this "pre-approved" amount. Life is expensive, owing a home is expensive. Monthly budgets are not just "car payments and student mortgages", if the banks were truly accounting for a "personal cash flow" they wouldn't be lending out un-realistic amounts. I often cut the "pre- approved" amount way back when we are shopping, I don't want my clients house poor or worse. That in my opinion is where we need the reality check, I'm sure it is no different in the US.
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