If you’re in the market for an insured mortgage, then you might want to get that mortgage 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 homebuyers are required to have mortgage insurance if they have less than a 20 per cent downpayment. 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 downpayment required. A homebuyer with a $250,000 mortgage and a 5 per cent downpayment 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 actually more substantial for larger downpayments of 15 per cent or more. Those with 20 per cent or more downpayment aren’t required to have mortgage insurance, although it’s used by lenders that securitize their mortgages. As a result, any increased cost will likely be passedon to customers through higher rates.
Premiums are also increasing for “non-traditional” insured mortgages i.e. home buyers with borrowed downpayments, a type of mortgage downpayment that could grow in popularity as homebuyers strive to gain entry in the housing market.
The premium change will come into effect on March 17. Homebuyers will be able to access the current lower rates if they have bought a home and are approved before the March 17deadline, even if they have a later closing date.
90-day RRSP downpayment boost for first-time buyers ends March 1!
If you’re buying your first home, the Federal Home Buyers’ Program (HBP) and a taxrefund can boost the funds you have available. Make as big an RRSP contribution as you can before the March 1 contribution deadline for the 2016 tax year – up to your contribution limit or the maximum $25,000 per person. Use your downpayment savings if you can because you want as big a 2016 refund as possible. After 90 days you can redeem your contribution under the HBP program, giving you your original downpayment funds back PLUS a nice fat tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership!
If you are looking to buy, get in touch today!
First-time home buyers are now eligible to get $4,000 off there first home purchase!
Ontario has doubled the land transfer tax rebate for first-time home buyers Effective January 1st, 2017, from $2,000 to $4,000. That means as a first-time home buyer you will pay no provincial tax on homes sold for $368,000 or less.
Ontario REALTORS® are always lobbying hard for financial improvement for home owners. We are very proud to promote this rebate to first-time home buyers.
To help promote this new rebate OREA has created a website with an informative video and calculator that will help you figure out how much tax relief you can claim on your first home. Click here for details: www.FirstHomeRebate.ca
Information from: www.orea.com
CMHC is increasing its homeowner mortgage loan insurance premiums as a result of our regular review of insurance products and to reflect the new OSFI Capital Requirements for Federally Regulated Mortgage Insurers that came into effect on January 1, 2017.
The new premiums are effective March 17, 2017 and will result in an increase of approximately $5 to the monthly mortgage payment of the average CMHC-insured homebuyer. The premium schedule is as follows:
|Loan-to-Value Ratio||Total Loan Amount||Increase to Loan Amount|
|Up to and including 65%||0.60%||0.60%|
|Up to and including 75%||1.70%||5.90%|
|Up to and including 80%||2.40%||6.05%|
|Up to and including 85%||2.80%||6.20%|
|Up to and including 90%||3.10%||6.25%|
|Up to and including 95%
– Traditional Sources of Equity
– Non-traditional Sources of Equity
Note: for purchase/new construction loan applications, the premium rate is applied to the Total Loan Amount. For portability loan applications, the premium is the lesser of: the rate applied to the Increase to Loan Amount; or the premium rate applied to the Total Loan Amount.
- CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or afterMarch 17, 2017.
- CMHC’s current premium rates will apply for applications submitted to CMHC prior toMarch 17, 2017 regardless of the closing date.
- As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
- The changes do not impact mortgages currently insured by CMHC.
For more information on the new premiums, visit cmhc.ca
This article was provided by;
Sarah Collins, AMP
Mortgage Broker with Mortgage Intelligence
(NC) The new year is a time for new resolutions. Instead of pledging to drink less caffeine or start using that gym membership you bought last January, why not take on a resolution that is both sustainable and beneficial to your health?
Volunteer work is the new health regimen. A recent study conducted by Harvard University has shown that those who take part in regular volunteer work have similar health benefits to those who exercise regularly. Physicians have even added volunteering to their list of recommendations for all patients.
If that’s not enough to convince you, here are five more benefits to get you on the volunteering track for 2017
- Happiness: Volunteer work has been shown to increase endorphins, a hormone in the nervous system that causes an analgesic effect when activated. Volunteers often experience this and have an overall feeling of happiness.
- More time: People who donate their efforts to a good cause often feel as if they have more spare time afterwards. So even if your schedule is full, make time to help others.
- New skills: You can volunteer in whatever field interests you, from lending a hand at your local soup kitchen to helping a charity with graphic design or event planning. Volunteering allows you to learn new and exciting skill sets that can prove useful later in life.
- Less stress: Similar to the happiness provided by endorphins, volunteer work has been shown to decrease stress. It provides an outlet away from a busy life and leaves people feeling accomplished and stress-free.
- Weight Loss: A recent study in a pediatrics academic journal showed that teenagers who volunteer showed significant over all weight loss and better cholesterol levels than those who did not. Volunteering may actually help sustain and quicken your health goals this year.
If volunteer work seems like a good resolution for you, check out Toronto-based charity Beautiful World Canada. Working with partners in Uganda, Rwanda, and Sierra Leone, this organization provides scholarships for girls to obtain post-secondary education. This helps women graduate with a better chance of finding employment and allows them to focus on bettering themselves and their community. Find more information atwww.beautifulworld.org.
(NC) As students all over Canada head back to school for the 2017 school year, here are five tips to remember for success:
1) Work hard.
2) Set goals.
3) Stay organized.
4) Ask your teachers for help when you need it.
5) Read all you can.
A Canadian charity called Beautiful World is teaching their students these tips too. They are dedicated to improving the lives of girls in Sub-Saharan Africa through the power of higher education. Their scholarships provide hope for the future and a generation free from poverty.
(NC) Holiday décor is all about the details. This year, why not add a touch of charm to your home with an elegant tablescape that suits your personal aesthetic? To help take the guesswork out of holiday decorating, design guru Debbie Travis shares her tips to create a captivating dining space.
To create an air of glitz and glam, icy blues and captivating crystals nod to the frosty temperatures of the season and create a stunning tabletop. Travis recommends using sparkling crystal wine glasses and pairing them with a cool toned table runner for a subtle pop of colour. The combination creates a sophisticated ambiance, ideal for any dinner party.
For an edgy elegance, metallics are your go-to. Brass, copper, and gold décor are hot this year — and for good reason. These hues warm up a space, adding a trendy yet polished look. “Forgo the average greens and reds for more contemporary colours,” Travis advises. “My top tipwhen using metallic accents is do it sparingly. Pair them with other colours and textures so they stand out.”
If you’re seeking traditional charm, bring the outdoors in and have a little DIY fun by creating a rustic centrepiece that’s both beautiful and budget friendly. Travis suggests buying your own large glass bowl or vase and adding a collection of pinecones or beautiful Christmas crackers for a quick, fun holiday piece.
Find the perfect pieces for your home with the Debbie Travis Collection, available exclusively at Sears Canada.