Possible CMHC Relief Coming Our Way
A petition has been put forth to the Government of Canada requesting
a decrease in Canadian Mortgage and Housing Corporation’s (CMHC) insurance premiums.
In a recent article in the Financial Post, Canada’s largest provider of mortgage default insurance says “defaults are down and its profits are up.” So the argument is that Jim Flaherity and the Conservative Government have tightened up lending to the point where mortgage’s are not at the same level risk they were at previously. If these tighter mortgage rules have mitigated the risk, is it not fair to say that premiums in turn should be reduced?
The hope is that CMHC premiums will get slashed by up to 15%. This will positively impact the 1st time home buyer, who has to reduce their down payment even further, to pay CMHC insurance. It make sense that a larger down payment, will in turn, further reduce the risk of default to the mortgage institution.
If common sense and logic prevail the new year may bring some relief for home buyer who have become accustom to the tightening and restrictions in the mortgage industry.
For current rates and premiums, please click here