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CMHC (Canadian Mortgage and Housing Corporation) announced today that
they will be raising their premiums effective May 1st, 2014.
This does not affect current homeowners, only those who will be purchasing with less than 20% down payment.
Here is the link to the article: http://business.financialpost.com/2014/02/28/cmhc-mortgage-premiums/
The
article doesn't state the percentage they will increase it, only that
it will cost the average homebuyer requiring the insurance approximately
$5 more per month. It sounds like this will result in an increase of
between 0.25% and 0.50% to me. Currently, the premium with 5% down
payment is 2.75%.
I think it is very unlikely this will have
any impact on the real estate market and it is still expected that we
will have a strong 2014.
For those looking to purchase and get
in ahead of the increase, you will need to have your new mortgage set
up prior to May 1st. This means anyone who has not made a decision on a
property will need to do so by this time. The race is on!
