CMHC rates rise! Now is the time to buy!

As many know by now, CMHC rates will rise as of May 1, 2014! So what does this mean to you the buyer. Many don't even know what mortgage insurance is. It is when you have less than 20% down payment banks may not feel comfortable providing you a mortgage. So a third party comes in and offers the banks insurance if you default and you end up paying a premium. This premium is going up! Many are saying don't worry it won't affect you in qualifying for your mortgage, or  it will only raise your monthly payment by about $6.00 for a $300,000 mortgage. This is most likely true, but I say look at it in the long run! On that $300,000 mortgage the full premium over an average 25 year amatorization will jump from $8,250 to $ 9,410. That's $1,160. This would be like you buying a home/condo at a price and someone says ok I'm going to add $1,160 to that purchase price! I don't think anyone would be very happy about that. So do you want to avoid this?! Simple, now is the time to buy! There is a great inventory in Sasktoon right now and I would be happy to help you find that dream home and keep that money in your pocket! You can take me out for lunch:) It's cheaper!!

Annette Prpic

Annette Prpic

REALTORĀ®
CENTURY 21 Fusion
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