Christine Buemann Mortgage Broker

The mortgage world has patiently been awaiting CMHC’s announcement this morning. They recently announced that they will be increasing their premiums for mortgage loan insurance as of May 1 st , 2014. Mortgage loan insurance is mandatory in Canada if you have less than 20% down. Many lenders also purchase the insurance where the borrower has more money down and they cover the cost to minimize their exposure to risk. The premiums typically range from .60% to 3.35% of the total mortgage amount and it is generally included in your mortgage.    So what is mortgage loan insurance? It basically protects the lender in the case that the borrower defaults The example provided on the CMHC website is for a $250,000 mortgage at 3.49% with 5% down and a 25 year amortization. With the rate premium increase, the mortgage insurance premium on this loan would increase by $1000 and the borrower’s monthly payments would increase by approximately $5 a month. For more examples and for the

Amount     Under this plan, the maximum RRSP withdrawal is $25,000 for each eligible person. That is, a home buyer and his/her spouse may each withdraw up to $25,000 from their respective RRSPs. Eligibility     You have to be considered a first-time home buyer. You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal. Minimum Waiting Period     The RRSP contribution must be made a minimum of 90 days before any withdrawal is allowed. Payback     RRSP funds withdrawn for a first-time home purchase must be repaid in equal annual installments over a 15-year period. If more than the minimum amount is repaid during a year, the annual amount to be repaid in subsequent years is reduced. If less than the minimum is repaid, the shortfall must be in