Bank offers you should not accept

Many Franks pointed out this article in the Financial Post, which offers a flipside view to yesterdays “do whatever it takes to scrape up 5%” article.

It has a real simple message: Banks exist to make money.  That includes making offers that sound good but may not be in your best interest.

While many people want to blame the banks or the government for Canadas alarming consumer debt problem, theres only one person who is truly to blame: the consumer.  Sign yourself up for a suckers deal and you have only yourself to blame.

While some bank chief executives have put it on themselves to tighten their own lending rules, others continue to look to Ottawa to take the lead.

In the interim, all you have to do is walk into a branch, grab some pamphlets and you will see an array of offers that could get you into even more debt trouble.

One of my favourites is the cash-back mortgage. It is offered to a varying degree by most of the major banks, so there is no point in picking on any one institution.

Here’s the offer: Take out a mortgage for more than five years and get 5% of the value of the mortgage up front to a maximum of $25,000. In other words, get a $500,000 loan and immediately get $25,000 back. “It’s great for first-time buyers,” we’re told.

Really? If the loan is at the posted rate of 5.44%, which it usually is for these types of mortgages, you could easily land into more debt trouble long term.

Another deal tries to lure me over to a new bank with an offer of 2% cash up front, or up to $4,000 on $200,000 if I switch to the financial institution. But what about the costs to break my existing mortgage, and is there really any point in switching products to get that cash right away if I’m going to end up with a higher rate and a less-flexible mortgage?

“Somebody is going to pay for it,” says Kelvin Mangaroo, president of RateSupermarket.ca, about the cost of the promises. “Sometimes there is more fine print than the actual offer.”

Check out full article here.

What do you think, do we need more consumer protection to protect consumers from themselves?

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southseacompany
Member
southseacompany

From the Vancouver Sun: “Value-minded buyers fuelling strong spring housing market: report

http://www.canada.com/business/Value+minded+buyers+fuelling+strong+spring+housing+market+report/6449865/story.html#ixzz1rtVsxa00

Interesting quote, “Prices fell in Edmonton and Victoria, as well as in previously booming Vancouver, where they were down 30 per cent from a year ago, said Katie Archdekin, BMO’s head of mortgage products.”

Prices down in Van 30%? Wish it were true, but we’re not there (yet). I think they mean sales.
Courier quotes Maple Ridge prices up 30%. Now Sun quotes Vancouver prices down 30%. Some sloppy reporting going on. I hope people read this and start panicking.

good-format
Guest
good-format

Projected sales for April is 2,733
Projected inventory (before expiration at the end of month): 18202

Bailing in BC
Guest
Bailing in BC

@Anonymous:

Try “padmapper”

Anonymous
Guest
Anonymous

@jumpin in: ….OMG, not HIM again!!!…

So he’s created a site that only wealthy offshore folks can see?
Seems to me that he’s trying to hide how badly he’s trying to fleece those folks.
Q: How do you spell slime?
A: C-A-M.

Anonymous
Guest
Anonymous

@McLovin: “Go Canucks Go! ”

I can’t wait for this year’s riot! I’m going to Wallmart tomorrow to shop for a balaclava.

jesse
Member

I prefer the current state: sending spam comments into oblivion and out of my view. In the interests of debate, no matter how stupid it may seem, if it seems a genuine on topic comment without inappropriate or offensive content don’t mod it down, just leave it alone at “zero lower bound” or even mod it up if it gets too far negative, a form of “quantitative easing” for on-topic comments.

Save the negative scoring for the true wastes of space. Ryan Kessler would want it that way, as would The Pope’s ad revenues.

Real Housewives of Surrey
Guest
Real Housewives of Surrey

@Anonymous:

Hourly weekly or monthly?

WFT?
Guest
WFT?

The vancouver real estate market is going full retard.

Real Housewives of Surrey
Guest
Real Housewives of Surrey

Watch our new Series !

Live from Whalley Newton!

(get your shots first if you have HDTV)

Anonymous
Guest
Anonymous

@s.park: What are the best websites to find rentals?

s.park
Guest
s.park

a sign of the times? consignment sales up…

http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20120126/bc_steele_consignment_120126/20120126/?hub=BritishColumbiaHome

“…rise in consignment is fueled by consumers who are becoming more quality conscious and want to buy pieces that will last a long time, especially now that the economy is softer and people are tightening their belts, so to speak.”

Donald Trump
Guest
Donald Trump

shut up!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

good-format
Guest
good-format
Date Listing Price(+-) Sold Inv Inv(+-) S/L(%) Mar-28 259 118 104 16,173 84 40.2 Mar-29 239 104 151 16,180 7 63.2 Apr-02 450 139 125 16,074 27.8 Apr-03 319 133 224 16,124 50 70.2 Apr-04 302 131 147 16,230 106 48.7 Apr-05 277 118 117 16,345 115 42.2 Apr-10 403 211 159 16,475 130 39.5 Apr-11 416 151 202 16,618 143 48.6 Total-Cur 2,167 883 974 544 44.9 5 day-avg 343 149 170 109 49.4 Total-Est 6,631 2,817 3,181 18,032 1,958 48.0
real_professional
Member

Inventory,

“The path of the righteous man is beset on all sides by the inequities of the selfish, and the tyranny of evil men.”

Finally
Guest
Finally

Sandy Garassino replies to Alen Garr’s ““Blaming Chinese For High House Prices in Vancouver Is Racist” Van Courier article:

Finally!

Someone who calls a spade a spade!

What is even better is that her prose, vocabulary and literary style kicks the ass of that tool Garr.

That article sums up why I voted for Sandy!

southseacompany
Member
southseacompany

Sandy Garassino replies to Alen Garr’s ““Blaming Chinese For High House Prices in Vancouver Is Racist” Van Courier article:

http://www.vancourier.com/Reader+Soapbox+Concern+about+foreign+Chinese+buyers+Vancouver+based+facts/6442525/story.html

RippedtoShit
Guest
RippedtoShit

April should showcase further month over month price declines. By the end of June (hopefully sooner), prices will be negative year over year.

The sheeple will have difficulty sticking that in their pipe and smoking it. Realtors will be compared to basic pond scum by fall.

Their shit stinks, bad. We will see thousands of RE industry (and related) job losses by fall, and that’s just the start.

Basic laws of supply and demand – eventually it is about fundamentals.

This show could take years to play out. In a matter of 12 weeks or less, the masses will start to learn about it, then it gets fun. Cocktail parties this summer will comment on so and so who got their asses handed to them.

Fucked right up.

jumpin in
Guest
jumpin in

OMG, not HIM again!!!
He is trying to sell that house by any means.
http://www.canadianbusiness.com/article/74982–private-real-estate-service-launches-in-b-c

I guess Good’s commission justifies it: the seller must be motivated after already losing so much equity on that home.

Donald Trump
Guest
Donald Trump

would you clowns be quiet? No one cares!!!!!!!!!!!!!!

Actually, AH is my initials, but thanks for asking!

RippedtoShit
Guest
RippedtoShit

Boom, I told these dolts this day was coming.

Put a big red X on your calendar, we are about to go to ALL TIME listings high for our spring market.

Just wait until the bank rate notches up. It might take time, but that will be some icing on the cake that’s now in the oven.

McLovin, if prices fall enough, you might even be able to quit your Saturday night specials (not that you’d want to – but you’d be able to).

Boombust
Guest
Boombust

A visit to Burke Mountain and other “new” areas in the northeast area of Coquitlam might prove interesting…there are TONS of new properties STILL being built and others newly completed or nearing completion.

Add these into the leaping inventory levels and……I will have been right all along.

“Boombust” is the name.

Tick Tock
Guest
Tick Tock

If the Canucks win the cup, this will no doubt be the oh oh year/turning point for RE in Vancouver. Either way they have a good chance, and RE has a good chance of a nose dive.

Renters rule!

JR
Guest
JR

What happened to Anonymous who thought “nothing interesting was happening” at this time?

McLovin
Guest
McLovin

PS – Nice inventory numbers bulls…

McLovin
Guest
McLovin

I might be bearish on Vancouver Real estate but I bullish on the Vancouver Canucks!

Go Canucks Go!

Let the adventure begin!