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Mortgage Broker News | 05 Apr 2010, 12:00 AM Agree 0
A weekend report in The Ottawa Citizen prompted questions about whether federal MP and Status of Women Minister Helena Guergis was given special privileges on her mortgage.
  • Deepak Bansal, AMP | 06 Apr 2010, 02:23 AM Agree 0
    She must have been offered Scotiabank's "Free Down Payment" mortgage product. The client is responsible for putting 5% down payment, the Bank charges the 5-year posted rate, and refunds the 5% down payment back to the client upon closing in turn for charging a higher rate.
  • Kevin Power | 06 Apr 2010, 02:26 AM Agree 0
    Another clear case of lack of disclosure on the STEP Product offered by Scotia and similar products offered by other lenders. Now that a Federal Minister has become aware of the registration practices and the control that lenders have on the equity in the home, maybe Lender Disclosure Requirements may become more transparent.
  • AB Mortgage Broker | 06 Apr 2010, 03:03 AM Agree 0
    The "big banks" are in it for themselves and the broker community needs to start supporting the non-bank lenders. How many times have you seen a branch take a previously issued pre-approval, pull it and offer it to someone else? Furthermore, the reason Scotia offers the STEP and RBC offers the Home Line Plan is so they can tie the hands of the client. Too many times I have seen multiple terms within these products and with different maturity dates!! Makes it impossible for the client to transfer or switch without incurring a penalty. Support your non-bank lenders!!
  • Ontario AMP | 06 Apr 2010, 03:24 AM Agree 0
    Scotia probably gave her a line of credit up to 100% LTV. Technically they're only supposed to give LoC's to 80%, but they probably made an exception for her. She's not going to buy with nothing down...she's a well paid civil servant. Trust me, she's got the down payment.
  • Kevin Power CPMA | 06 Apr 2010, 03:40 AM Agree 0
    Doesn't seem like too many people know the control that banks have on these types of products. AB Mortgage Broker knows the story. Any one in our industry who sells these Scotia STEP RBC Home line and National Bank All In One type of product is doing themselves and their customers a major dis-service. Customer retention product and banks securing their unsecured debt by the equity in the home, is the reason why they are pushing these products. We have never sold them and will never do so in the future. We actually care about our clients.
  • Jim - Alberta AMP | 06 Apr 2010, 06:08 AM Agree 0
    If you have dealt with these type of products, you should know that banks register the collateral mortgage for the full purchase price or appraised value of the property but only advance up to the "Global Limit" which is usually 75 to 80% of the PP/AV. Anyone [ie: snoopy press/opposition members] searching the title would think that because the mortgage is registered for the full amount, that is what was actually advanced - which is incorrect. Educating the client won't stop snoops from drawing the wrong conclusions in order to dig up dirt.
  • Sven | 06 Apr 2010, 07:00 AM Agree 0
    I have done more than a few mortgages for politicians at all levels of gov't. (note to Ontario AMP, she is NOT a civil servant.She is a federal politician. Her well paying job disappears when the electorate finally throws her out of office) & they are either all sugar, or all sh..
    Politicians are either people sucessful in other careers with reasonable net worth & credit worthy, or credit bums kiting from credit cards to chequing accounts relying on their political positions & possible favours to get credit, they may not have normally qualified for.

    Banks very rarely turn down any credit to a Federal politician or senior public servant.You never know when that politician/public servant may be sitting on, or staffing, a Parliamentary Committee investigaing banking practices or credit cards fees.

    If you are in the position of being a cabinet minister or an assistant deputy minister & up, your financial dealings & your assets should be wide open to public scrutiny.If you don't want that to happen, don't be a politcian or senior bureaucrat.

    As far as supporting "non-banks" be careful who you support. Doesn't at least one of the "non-banks" have the majority of its shares owned by at least two of the major banks?

    While you are on the topic of "non-banks", who really owns Filogix? Davis & Henderson Income Fund.Cheque printers to the banks.
    Who owns the the common &/or preferred shares of the Company (not the fund) & who holds most of the units of the fund?


  • Sven | 06 Apr 2010, 07:00 AM Agree 0
    I have done more than a few mortgages for politicians at all levels of gov't. (note to Ontario AMP, she is NOT a civil servant.She is a federal politician. Her well paying job disappears when the electorate finally throws her out of office) & they are either all sugar, or all sh..
    Politicians are either people sucessful in other careers with reasonable net worth & credit worthy, or credit bums kiting from credit cards to chequing accounts relying on their political positions & possible favours to get credit, they may not have normally qualified for.

    Banks very rarely turn down any credit to a Federal politician or senior public servant.You never know when that politician/public servant may be sitting on, or staffing, a Parliamentary Committee investigaing banking practices or credit cards fees.

    If you are in the position of being a cabinet minister or an assistant deputy minister & up, your financial dealings & your assets should be wide open to public scrutiny.If you don't want that to happen, don't be a politcian or senior bureaucrat.

    As far as supporting "non-banks" be careful who you support. Doesn't at least one of the "non-banks" have the majority of its shares owned by at least two of the major banks?

    While you are on the topic of "non-banks", who really owns Filogix? Davis & Henderson Income Fund.Cheque printers to the banks.
    Who owns the the common &/or preferred shares of the Company (not the fund) & who holds most of the units of the fund?


  • Margaret | 07 Apr 2010, 03:04 AM Agree 0
    That's a rather high-priced house to buy, banking on your job as an MP to pay for it - but of course if she also has a $100,000+ pension as well, she doesn't have to worry about a salary, does she? Helena, and the rest of the Tories are addicted to a high life that provides limousines and drivers, bodyguards and plenty of staff. She's not going to want to give that up easily. How an airhead, wannabe princess got into our Parliament is a topic for speculation, but it looks like favouritism and pushing have provided her with a career.
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