March Newsletter!

"Spring Is Coming!" - Win A $100 Gift Card!

Let's see if you read about my fresh start! .

Let me know the name of the new brokerage I joined and the winner will receive a $100 gift card from Canadian Tire or Terra Greenhouses.

Email me at mathieufugere@gmail.com with the answer.

Winner will be chosen April 3rd.

Late Winter Ski

Since Southern Ontario did not receive too much snow this winter so we headed east for March break to go visit our family in Gatineau and take advantage of all the snow they've received...15 cm alone while we were there!  Our two youngest got to ski for the first time and were quite successful at it.

CMHC Wants More Of Your Money!!

Starting March 17, CMHC started to charge mortgage holders slightly more every month to insure their loans.

By law, anyone putting down less than 20 per cent of the purchase price of a home in Canada must pay mortgage insurance, even though the homeowners themselves don't benefit from that coverage. Rather, it's a fee borrowers pay so if they default on loans, their lenders aren't on the hook. Instead, an insurance payout would cover any defaulted loans.

Here's an example of what it could end up costing the consumer.  Let's take a purchase price of $600,000 and the buyer has a 10% ($60,000) down payment.  That leaves $540,000 to insure.  Right now that premium is 2.40% or $12,960 for a mortgage of total mortgage of $552,960.  Based on an interest rate of 2.69%, the monthly mortgage payment will be $2,529.70.

On March 17, 2017 the premium increased to 3.10% or $16,740 for a total mortgage of $556,740.  The buyer starts off owing $3,780 more and his monthly payment increases by $17.30 to $2,547.00.  

As to why our dear government decided to make it a little more expensive for people to buy a home...Well, we haven't quite figured that one out yet!