Canada Mortgage and Housing Increases Mortgage Insurance Premiums.
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.
They have not indicated yet what percentage they will increase it ny , 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!