Mortgage before May:
Rising insurance premiums bump up costs
(By: Mortgage Intelligence Inc.)
If you’re in the market for a mortgage, and have less than 20% downpayment, then you might want to get that mortgage before May.
For the first time in more than a decade, Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes: an average 15%. Private insurer Genworth followed suit with a matching increase. Canadian homebuyers are required to have mortgage insurance if they have less than 20% equity in their homes.
How does it hit your wallet? A first-time homebuyer with a $248,000 mortgage and a 5% downpayment will pay an extra $5 per month in insurance premiums. If you are self-employed, a larger fee may apply. We can calculate exactly how much the increase will mean to you.
The change will come into effect on May 1st. Homebuyers will be able to access the current lower rates if they have bought a home and are approved before the May 1 deadline, even if they have a later closing date.
If you’ve got less than a 20% downpayment and are looking to buy this spring, get in touch today!
Cheapest isn’t always best! Strangely, we know that’s true when we’re shopping for anything else, but we still tend to believe that lowest rate is the one and only factor in choosing a mortgage. Unfortunately, that low-rate mortgage could actually cost you more in the long run.
A cut-rate mortgage could have you locked in to a very rigid contract filled with financial “trip lines” that could work against you down the road.Sometimes those cut-rate mortgages come with higher fees, penalties, or restrictive terms, which could prove more costly over the long term than a slightly higher-rate mortgage with flexible terms.
We’ll help you find the right mortgage with the rate, flexibility, and freedom you need to be a happy homeowner. (By: Mortgage Intelligence Inc.)