If you’re in the market for an insured mortgage, then you might want to get that mortgage before March 17.

Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes for the third time in three years. Canadian home-buyers are required to have mortgage insurance if they have less than a 20 per cent down-payment. The insurance provides protection for the lender in the case of a default.
How will it hit your wallet? The increase is not too significant for those making the minimum down-payment required. A home-buyer with a $250,000 mortgage and a 5 per cent down-payment will only pay about $5 per month more in insurance premiums.  I can calculate exactly how much the increase will mean to you if you get your mortgage approval on or after March 17.
The increases are actually more substantial for larger downpayments of 15 per cent or more. Those with 20 per cent or more down-payment aren’t required to have mortgage insurance, although it’s used by lenders that securitize their mortgages. As a result, any increased cost will likely be passed on to customers through higher rates. 
Premiums are also increasing for “non-traditional” insured mortgages i.e. home buyers with borrowed down-payments, a type of mortgage down-payment that could grow in popularity as home-buyers strive to gain entry in the housing market.
The premium change will come into effect on March 17. Home-buyers will be able to access the current lower rates if they have bought a home and are approved before the March 17 deadline, even if they have a later closing date.
If you are looking to buy, get in touch today!

90-day RRSP down payment boost for first-time buyers ends March 1!
If you’re buying your first home, the Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available. Make as big an RRSP contribution as you can before the March 1 contribution deadline for the 2016 tax year – up to your contribution limit or the maximum $25,000 per person. Use your down-payment savings if you can because you want as big a 2016 refund as possible. After 90 days you can redeem your contribution under the HBP program, giving you your original down-payment funds back PLUS a nice fat tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership.

Feeling the post-holiday financial squeeze? You’re not alone. January and February credit card bills are arriving to remind us how much we spent on the festive season. That's why this is the perfect time to make sure you have the financial control you need to achieve your goals. Here are some strategies that can help:

1. Kill high-interest debt. If you’re carrying large credit card balances or other high-interest debt and have enough home equity, you may be able to consolidate that debt into one low-rate mortgage. You’ll improve your cash flow, and simplify your life with one easy payment. Best of all, you can pay down your debt faster and save thousands in interest. No more running up credit cards and you’re golden.
2. Boost your credit rating. You can improve your rating pretty quickly with a few smart moves. Always pay your bills on time. Never let your credit card balance go past the 50% mark, i.e. if you have a $5,000 card, it should never go past $2,500. That goes for any lines of credit, too. And don’t apply for store cards when you’re asked at check-out. The better your credit rating, the better the rates you can negotiate on your next mortgage.
3. Step up your payments. If you are paying your mortgage monthly, consider changing to accelerated bi-weekly or weekly, increasing your payment amount, and putting a lump sum such as tax refund money on your mortgage principal. You can save significant interest over the life of your mortgage. Even small amounts add up.
4. Renovate, don’t relocate. Feeling like it’s time to trade up? Consider this: the right renovation might be all it takes to turn the house you’re in, into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have some fantastic renovation financing options to help you improve the quality of your life while increasing the value of your home.
5. Choose low-interest debt.  According to a recent Mortgage Professionals Canada survey, in 2016, almost 10% of homeowners had enough home equity and turned to their mortgage for low-cost financing.  The average equity take out was $47,600, which was used for renovations (31%), debt consolidation (28%), investments including second homes and rental properties (22%), and purchases or education (9%).   
6. Do NOT sleepwalk through your mortgage renewal. Be sure to get in touch when you get a renewal notice. Your renewal is your golden moment to save thousands. I can help make sure you get the best possible deal!
   

If you’re feeling financially overwhelmed, or if there is a new purchase, refinance, or renewal in your financial future, get in touch so I can help make sure you get where you want to go.

Have a great day!!