Quote:
Originally Posted by Slava
I don't think that the point is to cut the number of buyers though. I think that the point is to make those people who are buying have more skin in the game from day one, so if the markets do drop people don't walk away as easily/quickly. Its really more protection for the lenders.
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Wouldn't it be more protection for the insurers than anything? Banks are already protected through CMHC. Accordingly, I wonder if CMHC will be raising their rates since the amount they charge is dependent on the LTV of the loan. So this will cause a drop in CMHC revenue. Or will they leave their fees and account for it via less risk?