The Canadian Mortgage and Housing Corporation (CMHC) is set to raise rates on March 17th, 2017 on insurance against mortgage default for home buyers with less than 20% downpayment.
While the average mortgage in 2016 across Canada was $245, 000 with an average down payment of 8% of the purchase price, the average mortgage in the GTA is considerable higher due to soaring home prices.
The average hi-ratio mortgage holder around Toronto will likely see an increase in their monthly mortgage payment of $25.
The new rates apply only to buyers who apply for CMHC protection on or after the 17th of March and do not effect clients who already hold policies.
For more information and a premium calculator click here https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2017/2017-01-17-0830.cfm
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