If you are in the market to get a mortgage with less than 10% downpayment, you might want to get that mortgage before June.
Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes with less than 10 per cent down. The new premiums are expected to increase by about 15%. Canadian homebuyers are required to have mortgage insurance if they have less than 20 per cent equity in their homes. Premiums will not increase for those with downpayments of 10 percent or more.
How does this affect you? A homebuyer is expected to pay an extra $450 per $100,000 in mortgage. We can calculate exactly how much the increase will mean to you.
The change will come into effect on June 1, 2015. Homebuyers will have access to the current lower rates if they have bought a home and are approved before the June 1 deadline, even if they have a later closing date.
If you are looking to buy and you have less than 10 per cent downpayment, get in touch with the team at MiMortgage.ca today! To get pre-approved apply now through our secure website or speak to one of our agents at 1 866 452-1100.