there is actually a name for those mortgages with "teaser loans" and other enticements .
they are known in the mortgage business as "NINJO" mortgages :
"no income - no job mortgages" - of course , the mortgage agent will still collect the commission - after all , the mortgage "specialist" has to make a living , right ?
in the life insurance business there was at one time a similar scam going on (doesn't work too well any more btw.) :
agent finds a recent immigrant , tells him that his company has a special "deal" for him and his relatives .
agent sets up bank account for client and puts as many as three monthly payments into account . he chalks up the sale and gets commissions for the whole year ! usually equal to a full year's premium - possible even up to 150% with bonus for "high sales" volume . most clients have no intention to continue paying after thre months and let the policy lapse . the scheme often works for 9-12 months before the insurance company wakes up and realizes that the policies aren't staying on the books .
so the agent leaves and finds a new company , shows his great commision statement from his previous company and promptly gets hired ... and repeats the process over a gain ...
profitable for the agent , but not the company <GRIN> .
unfortunately not as many immigrants coming to canada to participate - it's a lot more difficult for an agent to make an "honest" buck these days .
ps. worked for about 30 years in the industry - many years as an auditor - oh , what fun it was <GRIN> .