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.
Mike Grenby and his wife bought their first house in Vancouver in 1971. They worked hard and sacrificed (their son didn't make it to Disneyland until he was 21) - and they paid off their mortgage in seven years.
When the couple went to buy their second, slightly larger home, they did not want to have debt again.
If it seems like high-rise condominium units are keep getting smaller and affordable single family homes are getting harder to find, it's true.
Data from RealNet Canada Inc. for Toronto, to be released Wednesday, paints a grim picture for buyers hoping to avoid condominium living in favour of a low-rise home. It's a trend that the chief executive of Sotheby's says he's seeing across the country.
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.