Bank of Canada announced the rules have changed to make it tougher to qualify for an insured Mortgage. All Insured Mortgages will need to qualify under the Bank of Canada’s benchmark rate (currently 4.64%) on all the terms set out by the banks 4, 5 or more years.
CMHC made the biggest industry news last week by announcing increases to default insurance premiums, effective May 1st. Premiums will increase by about 15% for borrowers with 5% down which, for the average Canadian homeowner with a five year mortgage, will increase carrying costs by about $60 annually.
The Governor of the Bank of Canada, Stephen Poloz, appeared on BNN's Headline with Howard Green on Wednesday and proclaimed the Canadian Mortgage market is healthy. "We have a competitive mortgage market and that is good for you and me; three-year and five-year rates could go up more as the fed continues its tapering and people will see that when they renew but mostly what we see is today people are renewing at a much lower rate than they did last time," Poloz said.