Below are some changes slated to hit the mortgage market in 2017. I received this from an awesome mortgage broker (contact details below if anyone is looking)... The mortgage environment has already seen a lot of movement in 2017, here is a quick debrief of the three big changes thus far.
- Today CMHC announced they will be raising their premiums starting March 17, 2017. We are expecting the other insurers to follow.
- Rates with all lenders have increased and are increasing!
- BC’s New HOME Partnership Plan for 1st-Time Home Buyers is Live
CMHC Premium ChangesThe CMHC premium is a cost (as a percentage) on the loan to value of a mortgage, it is the cost to insure the mortgage over the life of the loan. As an example: A home that is $750,000 with a mortgage of $675,000 (90% LTV). Today’s premium would be $16,200 & the new premium starting March 17th would be $20,925 – a difference of $4,725 or about $20/month over the life of the loan. Here is an info graph that shows the premium changes.

- Be a first-time homebuyer who has not owned an interest in a principal residence anywhere in the world at any time and has never received a first-time homebuyers' exemption or refund
- Be eligible for a high-ratio insured first mortgage for the home
- Purchase a home that is $750,000 or less.
- Be a Canadian citizen or permanent resident for the last five years
- Have lived in British Columbia for at least the full 12 months preceding your application
Other criteria are:
- The combined, gross household income of all individuals on the title must not exceed $150,000.
- The home being purchased must be used as the principal residence of all individuals on the title for the five years after purchasing.
Or click here to go to the BC Housing Website.
Sincerely,
Your Mortgage Pro,
Kerry Casidy
604.868.7081
kerry@casidy.ca