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Why mortgage/write an offer to purchase before March 17?

If you’re in the market for an insured mortgage (i.e. CMHC), then you might want to get that mortgage approved before March 17.

Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes for the third time in three years. Canadian home buyers are required to have mortgage insurance if they have less than a 20 per cent down payment. The insurance provides protection for the lender in the case of a default.

How will it hit your wallet? The increase is not too significant for those making the minimum down payment required. A home buyer with a $250,000 mortgage and a 5 per cent down payment will pay about $5 per month more in insurance premiums. I can calculate exactly how much the increase will mean to you if you get your mortgage approval on or after March 17.

The increases are more substantial for larger down payments of 15 per cent or more. Those with 20 per cent or more down payment are not required to have mortgage insurance, although it’s used by lenders that securitize their mortgages. As a result, any increased cost will likely be passed on to customers through higher rates.

Premiums are also increasing for “non-traditional” insured mortgages i.e. home buyers with borrowed down payments, a type of mortgage down payment that could grow in popularity as home buyers strive to gain entry in the housing market.

The premium change will come into effect on March 17. Home buyers will be able to access the current lower rates if they have bought a home and are approved before the March 17 deadline, even if they have a later closing date.

If you are looking to buy or want to learn more in how this may affect you or someone you know in the market of purchasing a home, get in touch today with Rasha Ingratta:
P: 519-250-4848
email: rasha.ingratta@migroup.ca
www.ShopMortgages.ca

Attached is a chart of what the premiums are today and what they will look like after March 17.
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Notice to reader/variable rate mortgage clients:

The Bank of Canada kept its overnight rate at ½ per cent today it's first rate decision in 2017. The Canadian economy is expected to expand by 2.1 per cent this year and in 2018.

This means if you are in a variable rate product your payments will remain unchanged for the time being.

For more information and details on the rate market call:
Rasha Ingrattta and her Team
P: 519-250-4848
Email: rasha.ingratta@migroup.ca
www.ShopMortgages.ca
3345 Dougall ave
Windsor, Ontario
(across from McDonald's)
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We are celebrating Christmas today at our office. If you are near please drop by and join us for hors d'oeuvre and wine. #Christmas #love #Jesus #shopmortgageswindsor
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12/21/16
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Happy Mother's Day xo.
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Josephine Apollonio-Mancina - Office Client Care Assistant.
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Our new office 3345 Dougall Avenue.
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