IANAFinancialInvestigator, but skimming through it sounds like: 1. Fraudulent applicants come to the bank with crazy stories to ask for enormous loans/mortgages toward a Toronto house, allegedly to turn hyper-suspicious big piles of cash into a more reputable-looking asset. 2. HSBC goes along with that because they want to suckle on the sweet regular payments of suspicious cash, even though they ought to damn well kn…
This doesn't necessarily even need to have a laundering angle. I have a different take: 1. They come with some money, enough for whatever minimum down payment is required (but notably, the issuing bank will also lower down payment requirements for clients with high income or assets, which are faked anyway) 2. HSBC is incentivized to issue mortgages, yes, that's their business. But the actual fraud here sounds more li…
There are so many Canadians waiting on the sidelines with their down payment ready to be deployed and are out competed year after year.
The pent up demand for housing is enormous. Even with the high interest rates.
Hell, with the rumors of interest rates going down, there is a frenzy to BUY now, suck up the high interest and get a relief in a few years, because people are afraid that if the rates go down, more people will qualify for a mortgage and it will bring more pressure, so better to buy now if you can.
I am convinced it will not go down in my life time ever. Too much demand, not enough supply.