akathy
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Posts: 4,546
Location: North Dakota
Jun 25, 2014 22:56:55 GMT
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Post by akathy on Jul 16, 2015 16:24:07 GMT
My friend's DD (a U.S. Citizen) married a man from Canada (a Canadian citizen)last summer and moved to Alberta with him. She has been in the process of applying for Canadian citizenship for a couple years now.
She and her new DH are having money problems and she told her Mom (my friend) that up there they just borrow from the government and don't really have to pay it back. She also told her Mom that most Canadian citizens never pay off their home mortgages.
Now this DD is very touchy so my friend rarely questions her just to keep the peace but we're really having a hard time believing this.
If anyone has any insight into what this kid is talking about could you please enlighten me?
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Deleted
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Apr 29, 2024 2:51:56 GMT
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Post by Deleted on Jul 16, 2015 16:25:56 GMT
Um.... no.
I have no clue what borrowing from the government even means, and we certainly do pay off our mortgages!!
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Dalai Mama
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Jun 26, 2014 0:31:31 GMT
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Post by Dalai Mama on Jul 16, 2015 16:26:40 GMT
I've never heard of borrowing from the government and not paying it off. Likewise, banks get very touchy when you don't pay off your mortgage. I don't know what version of Canada your friend's DD is living in, but it's not this one.
ETA ashley - borrowing from the government would include BDC loans (a crown corp) or student loans. |
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lucki
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Jun 26, 2014 1:07:03 GMT
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Post by lucki on Jul 16, 2015 16:28:18 GMT
Borrow from the government? Other than borrowing for student loans, I've never heard this. You have to pay the loans back.
Also, it may seem like we never pay off our mortgages because we can take out 30 year mortgages. It may seem like we never pay them off but if we don't keep making payments the bank will foreclose. Most people I know with mortgages are working really hard to pay off their mortgages to avoid paying all those extra years of interest. |
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Post by missfrenchjessica on Jul 16, 2015 16:30:16 GMT
I'm thinking there's a lot BS to what the daughter is saying.
I haven't live in Canada (I'm a citizen, but I'm married to an American and living in the US) in 15 years, but I have family there and not one has "borrowed" from the government and not paid it back. In fact, I'm trying to figure out what she means by borrowing from the government--No one I know has ever done that.
As for mortgages, my understanding is that they are for shorter terms that in the US and then you "reapply" when the term has come up. My brother had a 5 year mortgage for a bit and then "reapplied" for a another one when the term expired with a different interest rate--not sure if it went up or down, but that's my understanding...
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cakediva
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Location: Fergus, Ontario
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Post by cakediva on Jul 16, 2015 16:30:45 GMT
Hmmm - wondering if by "borrowing from the Government" is her way of saying they are making use of the welfare system? To maybe get around actually saying it?
(not that there is ANYTHING wrong with using the system if you need that hand up)
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psiluvu
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Post by psiluvu on Jul 16, 2015 16:31:47 GMT
Borrow from the government??? never heard of that. You certainly do need to pay your mortgage. My brother who had his house foreclosed on probably wishes you didn't have to but you do. She has no clue what she is talking about
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psiluvu
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Location: Canada's Capital
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Post by psiluvu on Jul 16, 2015 16:33:58 GMT
Hmmm - wondering if by "borrowing from the Government" is her way of saying they are making use of the welfare system? To maybe get around actually saying it? (not that there is ANYTHING wrong with using the system if you need that hand up) It used to be and may have changed but it used to be if you were a non citizen being sponsored by a citizen you could not partake of any of the social welfare programs and your sponsor had to prove that they could afford you. |
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cakediva
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Post by cakediva on Jul 16, 2015 16:35:04 GMT
I'm thinking there's a lot BS to what the daughter is saying. I haven't live in Canada (I'm a citizen, but I'm married to an American and living in the US) in 15 years, but I have family there and not one has "borrowed" from the government and not paid it back. In fact, I'm trying to figure out what she means by borrowing from the government--No one I know has ever done that. As for mortgages, my understanding is that they are for shorter terms that in the US and then you "reapply" when the term has come up. My brother had a 5 year mortgage for a bit and then "reapplied" for a another one when the term expired with a different interest rate--not sure if it went up or down, but that's my understanding... We just went through the mortage renewal process. Our mortgage was for a 30 year amortization, but a 5 year term, which means were were locked in to the interest rate for 5 years. When that was up, we shopped around for a new mortgage. Instead of just signing the renewal papers for another 5 years with our current company (one that was specialized in helping troubled finance cases) we opted to shop around for a new company, as our troubles were long behind us. So we had to "reapply" with the new company, and that involved a home inspection and resubmitting our financial info. The new mortgage was again a 30 year amortization length, and a 5 year term at this interest rate. We can pre-pay a certain percentage every year to pay it off sooner if we wish. |
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Post by evelynr on Jul 16, 2015 16:35:53 GMT
I doubt that she would be eligible for welfare without being a Canadian citizen.
I know that sometimes people are eligible for a grant from the government - example would be a senior citizen's home improvement grant.
I just think she is not being truthful.
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cakediva
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Location: Fergus, Ontario
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Post by cakediva on Jul 16, 2015 16:37:02 GMT
Hmmm - wondering if by "borrowing from the Government" is her way of saying they are making use of the welfare system? To maybe get around actually saying it? (not that there is ANYTHING wrong with using the system if you need that hand up) It used to be and may have changed but it used to be if you were a non citizen being sponsored by a citizen you could not partake of any of the social welfare programs and your sponsor had to prove that they could afford you. But does the same hold true if she is married to a citizen? I get that for an immigrant that is here on sponsorship (like DH's parents 42 years ago) that the sponsor has to vouch for the family. But if she is married to a citizen, that citizen would be eligible for the benefits any Canadian is eligible for, no? |
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Deleted
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Apr 29, 2024 2:51:56 GMT
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Post by Deleted on Jul 16, 2015 16:37:14 GMT
ETA ashley - borrowing from the government would include BDC loans (a crown corp) or student loans. Yes, but it doesn't sound like this person is a student or opening a small business. |
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Dalai Mama
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Jun 26, 2014 0:31:31 GMT
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Post by Dalai Mama on Jul 16, 2015 16:39:29 GMT
ETA ashley - borrowing from the government would include BDC loans (a crown corp) or student loans. Yes, but it doesn't sound like this person is a student or opening a small business. Yeah, well, this person thinks that we live in the magical country where banks hand out houses for shits and giggles so, who knows?  |
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oldcrow
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Post by oldcrow on Jul 16, 2015 16:39:37 GMT
I don't live in Alberta so I can't speak for that provincial government but in Ontario the answer would be no personal loan. And no personal loan from the federal government. Now there are loans and perhaps grants available for new businesses but I have no idea how they work.
Yes we do pay off our mortgages. There are people who continue to sell and then buy a new house right up until the day they die so I suppose they don't get around to paying them off. But in general we pay them off.
I think she is telling tales to make her mother less worried.
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Post by hollymolly on Jul 16, 2015 16:59:50 GMT
I'm just curious as to why she's telling her mother anything. She's a married woman. Unless she is asking her mother for financial assistance, it's not her business.
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akathy
What's For Dinner?
Still peaing from Podunk!
Posts: 4,546
Location: North Dakota
Jun 25, 2014 22:56:55 GMT
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Post by akathy on Jul 16, 2015 17:06:02 GMT
I'm just curious as to why she's telling her mother anything. She's a married woman. Unless she is asking her mother for financial assistance, it's not her business. This is true and she isn't asking her Mom for money but was just venting about the problems they were having and threw this out there. My friend just thought it was odd and didn't know any Canadians she could ask about it so I told her I'd ask the "all knowing" peas  |
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quiltz
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Jun 29, 2014 16:13:28 GMT
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Post by quiltz on Jul 16, 2015 17:18:29 GMT
Having worked in finance in Ontario, more people want to pay off their home mortgage as the interest is not deductible on your income tax (as I have been told it is deductible in the USA). I don't know of any programme that is not repayable. There are special grants for seniors to upgrade their homes or for other people who have mobility issues.
If you have less than 20% of the down payment for your home, then CHMC is necessary. This is the federal mortgage insurance called Canadian Housing & Mortgage Corporation.
www.cmhc-schl.gc.ca/en
The banking system in Canada is very different from the USA banking system.
Again, why is the mother involved?
Banks will do foreclosures. I was involved in one as a client's home was foreclosed. It is a horrible experience. |
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akathy
What's For Dinner?
Still peaing from Podunk!
Posts: 4,546
Location: North Dakota
Jun 25, 2014 22:56:55 GMT
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Post by akathy on Jul 16, 2015 17:35:33 GMT
Having worked in finance in Ontario, more people want to pay off their home mortgage as the interest is not deductible on your income tax (as I have been told it is deductible in the USA). I don't know of any programme that is not repayable. There are special grants for seniors to upgrade their homes or for other people who have mobility issues.
If you have less than 20% of the down payment for your home, then CHMC is necessary. This is the federal mortgage insurance called Canadian Housing & Mortgage Corporation.
www.cmhc-schl.gc.ca/en
The banking system in Canada is very different from the USA banking system.
Again, why is the mother involved?
Banks will do foreclosures. I was involved in one as a client's home was foreclosed. It is a horrible experience. Again, the mother ISN'T involved. It's just something her DD said when they were there recently and she was curious. A lot of things are different in Canada and the U.S. She was just wondering. Thank you you all for your responses. |
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Post by heartcat on Jul 16, 2015 19:57:48 GMT
I'm thinking either your friend misunderstood, or her dd misunderstands something.
Why would she and her dh be having money problems, if they could just borrow from the government and not have to pay it back?
The only time I can think of that you don't have to pay back money is if you have received a grant for something, or if you have declared bankruptcy. But a grant would not be considered 'borrowing' money, it's money that is given to you for some reason.
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Post by belgravia on Jul 16, 2015 20:03:23 GMT
What she's saying makes zero sense. The government is certainly not handing out cash. In Canada mortgage interest isn't tax deductible so we have a greater incentive to pay off mortgages as quickly as possible.
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Deleted
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Apr 29, 2024 2:51:56 GMT
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Post by Deleted on Jul 16, 2015 20:12:43 GMT
It would be very hard to get social assistance if you own any sort of property. They look at your assets with a fine toothed comb and they will not give you money if you own a house or anything. (I worked for this ministry in the province here, but I am assuming it will be the same everywhere). There is no shame in getting income assistance. It's there as a hand up and to help new Canadians get on their feet. It is also there for people with disabilities and other issues. This is entirely run by the province.
I doubt she is getting disability from the federal government as it is a fairly lengthy process to get it. Although her husband may be getting it. That I don't know. You can have assets and property while on CPP. (It is similar to old age pension).
Your friend's DD I think anyway may be feeding her false information to keep her from worrying. As long as they are officially married she has access to good health care and other services.
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Post by k8smom on Jul 16, 2015 22:03:07 GMT
That all sounds fishy to me. Even if it were true, not a shining example of her personal ethics to mooch like that. Nothing's free, someone's footing the tab!
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Post by sillyrabbit on Jul 16, 2015 22:11:16 GMT
Is the DD pretty young? That sounds like something my clueless 20 year-old DS would say.  |
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Post by marykate on Jul 16, 2015 22:18:16 GMT
She and her new DH are having money problems and she told her Mom (my friend) that up there they just borrow from the government and don't really have to pay it back. She also told her Mom that most Canadian citizens never pay off their home mortgages. What?! Canada does have a more generous social safety net than the United States, but it is hardly the socialist utopia (or dystopia, depending on one's perspective  ) that some Americans seem to think it is. I'm in the States now, but I was born and raised in Canada, and Canada is where all my family live. I can assure you that my parents had to pay off every cent of their mortgage! (which took them many, many years of hard work, and scrimping and saving). My sisters, cousins, etc. are also paying off their home mortgages. I have never even heard of people routinely not paying off that debt. Mortgages in Canada work pretty much the same way that they work here: you borrow money from a bank (not from the government), and of course you have to pay back that loan, or the bank will come after you. Borrowing from the government and not paying it back? Again, I have never heard of this. I suspect your friend's daughter is spinning things in order to lessen her mother's anxiety. |
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Post by JBeans on Jul 16, 2015 22:24:35 GMT
There is another crown corporation that they could borrow from but it relates to agricultural purchases and some business loans.
However, I can assure you, they care about arrears and defaults.
ETA: if they are having money problems, this place will not give you a loan. And if you defaulted in any way, they would most definitely seize and liquidate assets.
You are obviously getting some watered down version of details and likely because she really has no understanding about what she is talking about or she is definitely not being clear about what she is describing.
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Post by JBeans on Jul 16, 2015 22:29:41 GMT
Oh, and if she's saying most Canadians default on their mortgages, she spreading a massive pile o' bullshit.
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Post by scraphollie27 on Jul 16, 2015 22:29:58 GMT
Sounds like she got us confused with Greece. Although, it would be a real stretch of the imagination to confuse Alberta with Greece.
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Post by bc2ca on Jul 16, 2015 22:44:09 GMT
My friend's DD (a U.S. Citizen) married a man from Canada (a Canadian citizen)last summer and moved to Alberta with him. She has been in the process of applying for Canadian citizenship for a couple years now. She and her new DH are having money problems and she told her Mom (my friend) that up there they just borrow from the government and don't really have to pay it back. She also told her Mom that most Canadian citizens never pay off their home mortgages.Now this DD is very touchy so my friend rarely questions her just to keep the peace but we're really having a hard time believing this. If anyone has any insight into what this kid is talking about could you please enlighten me? Never paying off your mortgage and never paying your mortgage are two very different things. In my experience, most family and friends have paid off their mortgages and are land rich because of the real estate appreciation in large Canadian cities. It is difficult buying into those markets now and I can understand a young person believing they will never be mortgage free. I'm assuming your friend's DD has legal status as a permanent resident in Canada which would make her eligible for the same social assistance/subsidies/welfare benefits that her husband is entitled to. I suspect they aren't "borrowing" money from the government, but receiving some sort of subsidies. |
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theshyone
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Post by theshyone on Jul 16, 2015 22:47:29 GMT
If her husband is unemployed he could be collected EI (employment insurance), which does not have to be replayed unless there is an error found or fraudulently claimed. But he and and employers pay into the fund for it.
That's the only thing I can think of that would even come close.
Mortgages are paid on, but frequently people keep renewing and amortizing over longer periods. That may look like not paying off if you don't understand.
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LeaP
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Post by LeaP on Jul 16, 2015 22:48:52 GMT
American living in Canada. From my observation, people here most definitely pay their mortgages here.The tax laws are structured differently so you can't deduct interest. Also, most people I know have a mortgage that is fixed for five years (vs. 15 - 30 in the U.S.). A few years ago they shortened the repayment terms to try and cool the housing market.
Insofar as loans, the same companies that do credit ratings in the U.S. do them here. The ratings do not transfer between countries. You must have a credit history to borrow money or get credit cards. I've not heard of government loans that do not require repayment, especially not to foreigners.
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) that some Americans seem to think it is.
Refupea #1142
