As we know, inflation has been an ongoing conversation. Supply chain disruptions and rising gas prices related to the pandemic have caused higher than average inflation, which would normally be a cause for concern for homeowners. If inflation goes up, the policy rate goes up. That means more money out of pocket every month.
In this situation, however, there are reasons to be optimistic. The Bank of Canada seems committed to keeping the policy rate low stating that there likely won’t be a change this year and for most of next year…
If you are buying a property with the intention to rent it out to tenants, you need a 20% down payment regardless of purchase price.
Borrowers who are self-employed or who have poor credit may require a down payment that’s larger than the minimum.
For those purchasing with a down payment of less than 20%, Canada Mortgage and Housing Corporation (CMHC) mortgage default insurance is required, in order to protect the lender from the higher potential for default in a high-ratio mortgage. The premium (the amount you pay) for this insurance ranges from 2.8% to 4% of the total mortgage. Premiums in Saskatchewan, Ontario and Quebec are subject to provincial sales tax as well…