Premium Increases

There are two BIG things to announce this week. I'll start with the good news. The Bank of Canada met this morning and, as expected, the Prime rate did not go up. Variable rate mortgage and line of credit holders can breathe another sigh of relief. We are not expecting increased until 2015. Now for the not so good news. CMHC has announced that starting May 1st, their premiums will be increasing by 15%. This is not a huge upset for mortgage borrowers as for an average home buyer it means only a $5 per month increase in their payment. Genworth and CG have not announced any increase and it is likely that lenders will begin to favor those insurers. So long as you have a home you are going to buy and the application is in to CMHC prior to May 1st, you will get the current premium. After that date, premiums increase to 3.15% from 2.75% for a 5% down payment, from 2% to 2.4% for a 10% down payment and from 1.75% to 1.8% for a 15% down payment. If 2014 is the year you wish you buy a home, call me today to get pre-approved and start shopping!