The hike in
mortgage insurance premiums isn’t a dealbreaker for new home buyers, but it doesn’t help, reports The Calgary Herald.
Buyers now face higher costs for
mortgage insurance premiums, after Canada Mortgage and Housing Corp. rolled out an increase this week.
“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s vice-president, Insurance Operations.
That added expense sounds similar to what many people fork out for a large coffee and muffin in the morning, anywhere from five to nine dollars.
So, it likely wouldn’t be the difference between buying and not buying.
With that said, it’s another reason for home buyers to reach into their wallet.
“The changes to the CMHC fees is unfortunate as affordability continues to be the biggest obstacle in purchasing a new home,” says Allison Harvie, sales and marketing manager for Cedarglen Homes.
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