The Canada Mortgage and Housing Corporation is remaining quiet about what the announcement entails for now. All will be revealed on Friday at 11 a.m. EST. Spokespeople for the organization declined to comment on what the announcement was about.
Other media sources have speculated that the announcement could be related to the premiums homeowners must pay in order to obtain CMHC insurance.
Under the CMHC's current rules, homeowners who submit a down payment of less than 20 per cent of the purchase price is required to pay for CMHC insurance for their mortgage. Presently, the premium varies from between 0.5 per cent and 2.75 per
cent of the
price, depending on the size of the
According to the most recent statistical figures, the average price of a home in Canada is approximately $388,553. A prospective buyer of that home who goes in with 5 per cent down would have to pay the maximum CMHC premium. In this example, that amount would be an extra $10,685.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate