The foreign home buyers in Canada are now being given the chance to get mortgages with some of the country’s biggest lenders without having to show any financial statement or proof of income according to a study done by a news reporting site.
The study showed that starting from the guideline documents at Scotiabank that was obtained internally which was a down payment of 50 percent at most, there was no financial check needed whatsoever.
No financial check is needed to be done in order to grant mortgages that are worth $2 million and below at BMO, as long as there is a down payment of at least 35 percent. A requirement of a year’s mortgage payments when the loan is being given is needed by BMO.
Critics say this lenders rule puts local buyers at an uneven position. Nonetheless, BMO and Scotiabank emphasised on diligently doing checks on borrowers from outside the country. The investigation needs income verification guiding principles from HSBC, RBC, CIBC and TD, where unable to get precise data.