Getting a mortgage in Canada is about to get a lot more difficult..
Tuesday May 26th, 2020
COVID-19 has created financial challenges in the mortgage market, and changes are on the horizon which will make it harder for Canadians to get a mortgage.
The mortgage market has been in a state of flux the past two months and with that Canada Mortgage and Housing Corporation (CMHC) is contemplating possible changes to protect Canadians against instability in the housing market.
The CMHC is the government body that insures mortgages in Canada and last week, in a presentation to the government Evan Siddall, current President and CEO of CMHC, suggested that one change could be the removal of the 5% down payment option. Proposing that CMHC increases the minimum down payment to 10% on all new mortgages.
While this may only be speculation at the moment, the feeling amongst mortgage brokers in Canada is that change appears to be very probable and will likely come later this year.
If you or anyone you know is looking to purchase a home with 5% down payment, the window of opportunity to act is NOW before its too late!
Give us a call right away, we are here for you to answer any questions or discuss your options.
To helping you create remarkable realestate results,
Alex and Elaine.