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Old 11-28-2008, 08:01 PM
trent trent is offline
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Join Date: Jun 2008
Posts: 387
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My response that buyers with 0% down are irresponsible is not ignorant, and I stand by it. The reason the downpayments exist is to protect the bank from swings in the market (in case the borrower defaults and the bank has to foreclose) and to make sure that if the borrower walks away he/she loses the downpayment (this makes it harder to just walk away compared to the moronic attitude of "I don't have any equity in the house anyway so if I walk away I lose nothing").

We are in this economic mess exactly because of mortgages with 0% down. You obviously have a vested interest in propping the perception that irresponsible borrowing is fine, but soon enough very few Canadians will be able to qualify for mortgage as banks return to more stringent lending standards. When this happens the real estate prices will crash beyond anybody's expectations.

You have a good day.
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