CMHC to Increase Mortgage Insurance Premiums

General Matthew Hines 28 Feb


CMHC to Increase Mortgage Insurance Premiums


Just Announced: Effective May 1, 2014 CMHC will increase its mortgage loan insurance premiums for owner occupied, self-employed and 1-4 unit rental properties including low-ratio refinance premiums.

“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations. “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”

This will not affect mortgage currently insured by CMHC.

CMHC says the effect of the increase amounts to about  $5 per month to their mortgage payment.

You can get a copy of the press release here: http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm?WT.cg_n=TWT_MLI

Call me and get pre-approved today. 1-877-736-1876

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Matthew S Hines is a Toronto Mortgage Broker with Dominion Lending Centres Edge Financial. (#10710). Matthew is a First Time Home Buyer Specialist and has been helping aspiring home owners “Achieve The Dream” of home ownership since 2005. Matthew can be contaced at mhines@dominionlending.ca

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3 Emerging Factors that will Affect your Ability to OWN a Home in 2014

General Matthew Hines 27 Feb

 

 Why Now may just be the best time this year to purchase a home!

 


1. If you are considering a home purchase in 2014, now may just be the best time to do it. A Globe & Mail article this week suggests that CMHC may be announcing shortly it’s intent to raise mortgage insurance premiums. If this happens, Genworth & Canada Guaranty are sure to follow. 

2. With the spring market rapidly approaching, mortgage lenders have been positioning themselves to take advantage of the spring rush. As a result, mortgage interest rates are .20% to .30% below normal levels based on where Bond Yields are.

3. Well, continually rising house prices and rent increases.

Rising insurance costs coupled with a .20% to .30% increase in mortgage interst rates and higher house prices will conspire to increase the costs of home ownership to such an extent that another group of aspiring home owners will get priced out of the market.

DON’T get priced out of the market, Get in before costs rise.

Call me and get pre-approved today. 1-877-736-1876

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Matthew S Hines is a Toronto Mortgage Broker with Dominion Lending Centres Edge Financial. (#10710). Matthew is a First Time Home Buyer specialist and has been helping aspiring home owners “Achieve The Dream” of home ownership since 2005. Matthew can be contaced at mhines@dominionlending.ca

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