Important for anyone in the market for homes
in the $1million+ price range:
As of July 1, 2014 the Canada Mortgage and Housing Corporation (CMHC)- Canada's largest provider of mortgage insurance- will no longer provide insurance for homes costing $1million or more.
According to CEO of the Mortgage Brokers Association of BC, Samantha Gale, these changes are not anticipated to affect home buyers, as two other companies- Genworth and Canada Guaranty- will continue to provie mortgage loan insurance. However, considering some 5,377 homes sold in the REBGV in 2013 fell into the $1M+ price range, it will be interesting to see if this makes a difference.
Previously if you had a minimum down payment of 20% or more you were not required to purchase mortgage loan insurance, however it was sometimes encouraged as a condition for mortgage approval (conversely, if you had less than a 20% down payment, you were required to buy mortgage loan insurance).
To view the original article & for more information, click here.
Are you curious about mortgage loan insurance and why you need it? I'm happy to answer any questions or concerns you have about mortgage rates, approval, and how this change may affect you. Contact me and I'll be happy to help!
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