MP Helena Guergis' mortgage under the microscope

MP Helena Guergis' mortgage under the microscope

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.

The newspaper said property records show Guergis bought a 2,800-square-foot, two-storey home in late November and took out a mortgage through the Bank of Nova Scotia for the full amount of $880,000.

The Citizen added it was unclear if Guergis bought the house with no money down - which would be a special privilege since mortgage insurers no longer allow this practice - or whether the bank rolled a line of credit into the mortgage to bring it up to the full purchase price.

Guergis has been under fire since earlier this year, when she allegedly went on a verbal attack to staff in a Charlottetown airport and, more recently, due to letters of praise in newspapers that were reportedly written by staff members. 

 

9 Comments
  • Deepak Bansal, AMP 2010-04-06 2:23:31 AM
    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.
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  • Kevin Power 2010-04-06 2:26:35 AM
    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.
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  • AB Mortgage Broker 2010-04-06 3:03:45 AM
    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!!
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