Canadian Banks now using urine and hair samples to obtain mortgage?

Originally posted by Discotech
reply to post by Rook1545

 

wow you really didn't read the article did you ?

They're selling insurance for mortgages, not selling mortgages themselves.

It's basically payment protection incase you lose your job or you get too sick and go on a rate of pay which isn't enough to meet your mortgage repayments.

It's nothing about testing people to get mortgages or own houses.

You can still get a mortgage without this insurance, just you're pretty much screwed if you lose your job.

This company obviously (and quite rightly) see's drug users as a higher risk, therefore would rather eliminate the risk in order to avoid potentially costly payouts.

You do know how insurance works don't you ?

YOU obviously didn't read the article. Let me prove that you have no idea what the article says. Here is the EXACT quote, FROM THE ARTICLE:

The CUMIS Group Limited Insurance whohave beenpartnered along with thousands of banks across North America for insurance requirements, has now accepted a policy of pre-screening drug tests & hair samples for the right to obtain home loan insurance, a necessity, if you’re going to purchase a home in Canada.

That is making the implication that to own a home in Canada, you have to have this insurance. That is not true, you do NOT need this insurance, as both you and I pointed out. Read what I said.

And yes, I do know how insurance works. But since you are not Canadian, I would not expect you to understand how our mortgages work. There are 3 different insurances you have to get when buying a house here.

After talking with a few people in the bank this morning, 2 of which deal with CUMIS daily, they say that is patently false, unless CUMIS is not telling them the new procedures. They just got new guidelines from then 2 weeks ago, and there was nothing in the handbook about this at all.

This is fact, I have an appointment next wednesday with a lady that will come to my home for urine and blood samples. We where told that they have to do this because we bought a house that is worth more than 300 000$. On the info sheet it specifies that they are testing for Cocaine and Heroine.

I'm not going through this... I'm uninsurable anyways since I'm diabetic... I'm getting my own life insurance through work without any tests...

This is plain old stupid if your're asking me! It means that you can smoke crack and take speed and you're ok

reply to post by Donniedarko_13


...I take it back then...and will tell the people that deal with CUMIS that is true. I am completely shocked by this.

Come on people! Lets look at this with a dose of reality. This hack reporter can't even tell the difference between a bank and a credit union.

As an employee of a Canadian credit union and someone who is very familiar with CUMIS insurance I can assure you that this story is completely false. The insurance they are referring to is life insurance for the balance of your mortgage. Health questionnaires and health testing are common place for any type of life insurance. The average price of a home in Saskatoon (home of Affinity Credit Union) is $277.000.00. Is it not reasonable for an insurance company to ask for some proof of health before insuring more than a 1/4 million dollars of debt?

Being insured is not a requirement of being approved for a mortgage and consumers can pick from any insurer they like. Making the sale of one product conditional on the sale of another product is called tide selling and is illegal.

This reporter should learn something about journalism and start checking his facts before slandering good community based organizations such as credit unions.