CMHC loan insurance is increasing as of March 17^th . Keep in mind this is just CMHC that is increasing their premiums and we shall have to wait and see if the other insurers follow suit. Yes, this means that as of March 17th it is going to be more expensive for anyone putting less than 20% down. No, the increase to your monthly mortgage payment is not as little as $5 a month when you consider the average Toronto home price. The media is playing down the cost as they are reading the same thing that everyone else is reading which is based on the average home price of a CMHC insured mortgage in Canada of $245,000. Unfortunately, the prices in the GTA and Toronto are a lot higher than $245,000. Here is a chart that they have put out for what they deem to be the average transaction in Canada for 2016.

The overall average Toronto selling price for 2016 was approximately $730,000. Here is my own chart to give you an idea of what this change means based on the average Toronto transaction.

Down payment of 8% (CMHC said this was the approximate average in 2016)

An increase of $12.65 to your monthly payment should not induce panic. It will impact how much you qualify for monthly but it will be marginal. If you are shopping for homes and this difference does cause you stress, you should talk to a mortgage professional that can help you work out a budget that takes into account monthly savings for retirement and life events alongside your monthly mortgage payment and determine a price point that helps you end up in your comfort zone.

3+ 1 Bed, 1Bath

MLS#: E3305823

MLS# E3306427

If You Are Looking For A Turn-Key Hgtv-Like Home, This Is It! Attention To Detail Throughout This Gorgeously Renovated Home, From   Sparkling Quartz Counters, Modern Glass Railings To Weathered Oak Flooring Throughout, This 2+1 Charmer With Modern Finishes Also Has Original Rustic Working Fireplace And Brick Front Entrance. Tons Of Storage Space In Closets And Basement. New Outdoor Decking For Summer Entertaining, This One Has It All!  

Assumptions made in calculating household income required include estimated property taxes, maintenance fees, heat, credit score over 680 and having no consumer debt. The above amounts are estimates and qualification still depends on a formal mortgage application, credit verification and other conditions that may be necessary for approval. The above rates are subject to change without notice.Welbanks Mortgage Group, 1834a Queen Street East Lic#: 12232

Realtor: Barb Best

Cell: 416-220-5904

Email: barb@barbbest.ca