If you’re a soon-to-be first-time homebuyer you may be keeping an eye on some of the changes to mortgage legislation that’s been rolling out over the past year or so.
In October of 2016, changes were introduced that included new restrictions on default insurance for low-ratio mortgages, rate stress-tests to all insured mortgages, and new reporting rules. While these changes had impacts felt across the country, the changes happening in March 2017 will not be as extreme in markets like Atlantic Canada.
In its most simplified form, the changes will mean that mortgage default insurance rates will increase slightly. This measure may impact larger markets like Toronto and Vancouver where the average price of a modest family home has skyrocketed.
In markets like Atlantic Canada, our average housing cost is much less—about $200,000 compared to $470,250 in the rest of Canada—and the impact of the new changes won’t be as drastic.
Let’s look at some numbers:
In other words, your payment would only increase by about $5.
When you consider how much the payments on the average condo in Toronto would increase, it’s just one more reason why living in Atlantic Canada has its advantages.
If you have any further questions about these changes—or anything else mortgage related—connect with your local credit union today.