CMHC Lowers Down Payment
Effective
immediately:
A federal law that lowers the
level where mortgage insurance is required came into effect Friday, and we
believe the change could save many would-be homebuyers $2,000 or
more.
For the last 40 years, homebuyers
have been required to buy mortgage insurance from Canadian Mortgage &
Housing Corporation (CMHC) or another insurer unless their down payment equaled
at least 25 per cent of the purchase price.
With a down
payment of at least 20 per cent, mortgage insurance will no longer be
required.
One of the changes in Bill
C-37 is to cut the requirement for mortgage insurance to purchases with a down
payment of less than 20 per cent.
“The effect of that change is
that at least 10 per cent of buyers will now not have to buy insurance,” BMO
Bank of