Mortgage Before June
May 6, 2015 | Posted by: Laking Financial
Mortgage before June if you have less than 10% down
If you’re in the market for a mortgage, and have less than a 10% downpayment, then 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% down. The new premiums are about a 15% increase. Canadian homebuyers are required to have mortgage insurance if they have less than 20% equity in their homes. Premiums are not increasing for those with downpayments of 10% or more.
How does it hit your wallet? A homebuyer can expect to pay an extra $450 per $100,000 in mortgage. I can calculate exactly how much the increase will mean to you.
The change will come into effect on June 1st. Homebuyers will be able to access 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've got less than a 10% downpayment and are looking to buy, get in touch today!