CMHC Announces an Announcement **Edit: CMHC increases insurance premiums

[albertGQ]

http://www.canadianmortgagetrends.co...ouncement.html

CMHC will be making an announcement Friday at 11 a.m. EST. They’ve notified reporters well in advance, which is somewhat unusual.

Anyone want to take a guess about what the announcement will be about? If they're announcing that they're going to have an announcemnt, you'd think it'd be major news.

[Maccalus]

Free Houses for everyone?

[Brannigans Law]

An increase in the % of downpayment maybe?

[GP_Matt]

My money is on a move to raise down payments to 10%

[mustache ride]

Originally Posted by GP_Matt

My money is on a move to raise down payments to 10%

That would be a fairly drastic raise. Why would they do that?

[darklord700]

Either to increase downpayment to 10% or to increase mortgage default raio form 80% to say 75%.

[Tinordi]

Premium increases

[llwhiteoutll]

Originally Posted by mustache ride

That would be a fairly drastic raise. Why would they do that?

10-15% would be more realistic for a minimum. If you're putting down 5%, then chances are that you're getting in over your head.

If they do raise it, you can bet there will be a ton of squealing from people who for some reason believe that getting a mortgage with almost no money down is a right. Or that Conservatives are targeting poor people.

[GP_Matt]

Do banks still offer the 5% down 5% cash back mortgages? (Zero down without saying so)

[GP_Matt]

Originally Posted by mustache ride

That would be a fairly drastic raise. Why would they do that?

The idea is to slow down a heated housing market gradually to avoid a bust.

[albertGQ]

Originally Posted by Tinordi

Premium increases

The Globe and Mail is reporting this is the most likely scenario

Have you heard confirmation of this?

[corporatejay]

Originally Posted by llwhiteoutll

10-15% would be more realistic for a minimum. If you're putting down 5%, then chances are that you're getting in over your head.

If they do raise it, you can bet there will be a ton of squealing from people who for some reason believe that getting a mortgage with almost no money down is a right. Or that Conservatives are targeting poor people.

Seems like a pretty bold statement. What makes you say that?

[pylon]

Like anyone on CP actually has a CMHC mortgage.

[jar_e]

Originally Posted by pylon

like anyone on cp actually has a cmhc mortgage.

fyp.

[GP_Matt]

If you want to see why CMHC is a joke try to take out a mortgage with 19% down.
The fee to insure that last percent is one percent.

[Table 5]

Originally Posted by corporatejay

Seems like a pretty bold statement. What makes you say that?

I agree with his bold statement. If all you can scrap together is 5%, chances are you're not in a position to make the biggest purchase of your life. Part of showing you're financially sound is saving up for that down payment. It's not easy, and it takes time, but I don't think 10% is unreasonable.

[pylon]

Originally Posted by Table 5

I agree with his bold statement. If all you can scrap together is 5%, chances are you're not in a position to make the biggest purchase of your life. Part of showing you're financially sound is saving up for that down payment. It's not easy, and it takes time, but I don't think 10% is unreasonable.

I disagree.

With mortgages at all time lows, and 5 year fixed rates of 2.99% all over the place, why not borrow every nickel you can, and invest instead.

[Brannigans Law]

Originally Posted by pylon

Like anyone on CP actually has a CMHC mortgage.

[_Q_]

I agree with Pylon. It makes more sense financially to put down as little money as possible and use the rest on other forms of investments.

[Flabbibulin]

nm