CMHC Rule Changes Coming for July 2020
Here we go again, more changes to lending, this time the changes will affect high ratio mortgage insurance with CMHC. High ratio mortgages are anyone who is putting down less than 20% on their purchase price. GE (Genworth )and Canada Guaranty are both private mortgage insurance companies and will not be implementing the same changes at the time of this article, but we expect it would be likely to see them follow suit with the changes in the future as it will decrease their risk and exposure.
WHAT will change?
The new rules will lower the debt allowed for a homeowner to take on. So essentially...
CMHC on Deck to Make Things Easier for Self-Employed Borrowers
Qualifying for a mortgage is the first step when looking for Calgary homes for sale, as this is an integral part of the process that prepares you to obtain the keys to your beautiful new home. Canada Mortgage and Housing Corp. is now making changes that will make it much easier for the self-employed to effectively qualify for a mortgage. Self-Employment has long been a dream for many: you can set your own hours, be your own boss, and leverage the daily functions of your business in ways...
When more mortgage rules were announced for uninsured mortgages last month, I thought it might precipitate a spike in real estate sales in Calgary. People just don’t want to pay higher interest rates, and with the threat of new buyers being forced into homes in a lower price bracket, and in a neighbourhood they didn’t want to live in, people reacted.
The November 2017 stats were released on Dec 1 by the Calgary Real Estate Board (CREB) showing that sales are up 15% over November 2016 - proving my point. Real estate sales were up to 1,411 units, with improvement in numbers across the board. The majority though were in homes priced under half a million dollars.
Why Sales Are Moving
If you are interested in purchasing a home in Calgary, ( search Calgary MLS Homes for sale) you might want to take advantage of the Home Buyer’s Plan option that has been made available by the federal government. With this plan, you can use up to $25,000 of your RRSP savings to help finance the down payment on your home. Or, if you are a couple that is looking to buy a home in Calgary, you can use your RRSP savings for up to $50,000 toward a down payment. Before you take advantage of this option, however, it is important to understand how to qualify as well as the pros and cons of utilizing your RRSP savings as a down payment on a home.
How to Qualify to Use RRSP Funds for a Down Payment on a Home
In order to use your RRSP funds toward a down payment on a...
Another round of mortgage tightening is coming, meaning, more people looking for Calgary homes for sale will be forced to by less house.
It was just announced that the Office of the Superintendent of Financial Institutions (OSFI) will be implementing more stringent guidelines and implementing yet another stress test to make sure new home buyers have enough capacity to replay their mortgages.
This follows on the heels of last year’s new mortgage rules which were also implemented to make sure new home buyers can deal with possible increases in interest rates when renewal time comes. It reduced the purchasing power of many people in Calgary looking for their first home....
Government of Canada Announces New Guidelines Affecting Mortgage Qualifying Guidelines
The Government of Canada has announced some changes to the guidelines affecting mortgage insurance that can have a significant impact on homebuyers and how much they can borrow for a mortgage loan. With these changes going into effect on October 17th, those who are thinking about purchasing a home may want to get the homebuying process started before the new changes go into effect if they hope to increase the housing options that are available to them for purchase.
Understanding Mortgage Insurance
According to Canadian federal statutes, mortgage lenders are required to purchase mortgage default insurance for homebuyers who do not make a down payment that is at least 20 percent of the property purchase price. Also referred to as high loan-to-value or high-ratio insurance, this coverage protects the lender if the homebuyer defaults on the loan. Providing the lender...