News

 

Government of Canada housing changes Oct 17th, 2016

CMHC (Canada Mortgage and Housing Corp.) and the Banks tightened lending rules on federal insured mortgages again Oct 17,2016. 

1) The Federal Government and Lenders have changed the rate that you qualify for a CMHC or other Insured mortgage to the "deemed" or "posted" rate, currently 4.64%.

Previously, if you had between 5% to 20% down, and had to get Mortgage Default Insurance(CMHC) you could qualify for a higher mortgage at a low rate of 2.5% to 3%, which allowed you buy a nicer home. You still get the low rate quoted by the lender, you just get a smaller mortgage. 

So if you qualified for a 300k home, now you are down to about 250k. If you were thinking of buying a 500k home, now it's 400k. This while, house prices have gone out of sight. 

2) All Canadian Taxpayers must report the sale of a home on their tax return, whether or not it's their principal residence. In the past you only reported rental or investement properties.