GSB Mortgages 100%

[freedomnow]

Is this standard procedure over here with "100% mortgages".

 

GSB specifically giving a mortgage at "100%" aka no money down/no deposit which in effect is 110% when you sign...not a 10% cashback but rather 10% added to the value on day 1 that you need to pay over the term.

 

Example :-

Seller selling at X amount and the bank paying that amount to them, but the bank immediately values the house as X amount plus 10% giving them 10% instantly in claimable equity out of thin air, the moment the mortgage is signed.

Though they are known for very low rates, this model seems scammy in that the seller agrees X amount, but the bank then steps in and adds this 10% on you have to pay over 30 years...effectively money out of thin air for them in a foreclosure before you even get to the house being foreclosed and sold quickly below the market rate.

 

I guess this is why their rates are so low, to suck in the newb. investors with this structure or is it just standard fare globally ?

Edited January 8, 2019 by freedomnow

[freedomnow]

It's like the bank is flipping the house on day 1.

[baansgr]

If a buyer didn't have a deposit, it's a way of owning their own home,  everything  comes a cost.  It's a good idea for those wanting  their own home.