Metro News: No income? No problem! Irregular B.C. mortgage lending under scrutiny

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September 14, 2016 | Jen St. Denis

Quoted from the article:

NDP MLA David Eby is calling on provincial regulators to take a closer look at credit unions following revelations that several large Canadian banks have laxer rules in place for wealthy foreign buyers than for Canadian home purchasers.

A Globe and Mail investigation published Wednesday showed, for wealthy international buyers who pay a 50 per cent or more down payment, both Scotiabank and the Bank of Montreal exempt buyers from income verification and credit history checks that normally apply.

Eby said the information backs up a study of “unusual” home ownership patterns he tracked for urban planner Andy Yan earlier last year. Last November, Yan published a study showing that many owners of multi-million dollar properties in Vancouver’s Dunbar neighbourhood were listed as “homemaker” or “student,” while most of the properties had been bought with mortgages from Canadian banks.

“The message of Andy’s study was, look at these bizarre trends in our real estate market, look at the fact that students and homemakers are buying more real estate than professionals, and they’re buying them with mortgages,” Eby said.

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