CMHC is Getting Mortgage Expensive on May 1st, 2014
On Friday CMHC announced that it was increasing its Mortgage Insurance Premiums. Canadians looking to purchase with a Down Payment that is less than 20% should be prepared to see a slight increase on the price they get charged for Mortgage Insurance.
Many industry experts don’t think that this will have an impact on the Real Estate Market, and I would tend to agree. It has been a while since CMHC increased these premiums and an increase now might not be a bad idea.
Interest rates are still really low; both on the Fixed Rate and Variable rate Mortgage Products. We have been seeing a lot of activity running up to this Spring Market and expect that the really low interest rates will more than make up for any increase in Insurance Premiums.
If you are looking to Purchase or Refinance your biggest concern should be finding the right Lender, with the best Variable Rate Mortgage, unless you think bond yields are moving?