I just wanted to share some articles that I read today that I found super interesting.
So, in a previous post I mentioned that if you don’t have 20% saved up for a downpayment, that you will need mortgage insurance. A friend of mine mentioned today on article he read about how the CMHC is planing on raising the premiums for people with small down payments by 15%. As of June 1st, anyone with a downpayment of 5-10% will now have to pay a higher premium than before. However, if you have a downpayment of 10-20% the premium is staying the same. For further information on the current premiums that are being charged on CMHC mortgage loan insurance you can always visit the CMHC website, or click here to see the current rates.
On their website you can see that the loan insurance rate for a 5% downpayment is currently 3.15%, and with the 15% increase it will rise to 3.6%. These changes will only affect any loan applications after the June 1st date.
Another interesting article I read today is about Vancouver’s housing market. Although I don’t live there I find it very interesting to read as they are the most inflated real estate market at the moment from all of my reading. I particularly found this article to be interesting because I find it crazy how this couple bought a bungalow in 2000 for $488,000 and sold it for $2.4 million in March! What an insane return on investment.
Although Toronto is also one of the most inflated markets in the country, I am thankful to be in this area rather than Vancouver. The condos in Vancouver are selling for more than the semi-detached home I bought in the GTA. Granted I am not downtown Toronto, I find it crazy to spend more for a 600 sq ft condo than I did for my 1800 sq ft semi.
It’s very interesting to watch the market right now because I can’t imagine how it can keep going up and up. At some point, things are going to have to take a turn – but as long as the prices are continuing to rise, I’m glad I made my real estate investment when I did. Maybe one day I can make a $2 million profit! A girl can dream, right?
Follow me to the next article about possession date!