For those of you who are thinking of buying a home but are waiting for the right time, this bit of info may put the fire under you to speed up the process.
Because of the recent world events, as of the end of October 2008, the Canadian Mortgage and Housing Corporation will no longer allow you to purchase a home with 0% downpayment. So if you have good credit and you
a] haven't saved enough for a 20% downpayment
or
b] have the downpayment but choose to invest it to make you money,
call your mortgage broker. I have a couple of great people that I work with if you need a referral.
Here's a scenario taken from the CMHC website:
Buyer A
Ann buys a $164,000 home in 2000 with a 5% down payment of $8,200.
Here her mortgage is insured through CMHC, which required a mortgage insurance premium of $5,842 (based on the Insurance premium in effect in 2000 — 3.75%).
Buyer B
Julie delays buying her home for four years, until 2004, while she saves the 20% down payment in order to avoid incurring a mortgage insurance premium.
In those four years, that same average Canadian home appreciates from $164,000 to a value of $227,000.
The down payment Julie required to purchase this house in 2004 was $56,750.
Check out the CMHC Website and give me a call to help you find your perfect property.
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