Are CMHC going to Hike their Issuer Fees. What will the knock on effect be?

According to an article published by the Financial Post on December 12th the Canada Mortgage and Housing Corp. is tripling the fee it charges some financial institutions to guarantee loans in the mortgage-backed securities market, a move that could end up costing consumers more. The move appears to be aimed at the government’s stated goal of reducing its role in the mortgage insurance market but it just might have the added benefit of applying a bit more in the way of brakes to the housing market, which the Bank of Canada said this week might be as much 30% overvalued. According to Rob McLister, the founder of, said there’s little doubt in his mind that the changes will end up costing new home buyers and estimates it will mean about $600 on a typical first-time buyers’ mortgage of $250,000. For more information on this please visit

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