25 % Down-Payment Limit to be Lowered to 20 %
The federal department of finance has announced that the 25% down-payment limit is likely to be lowered to 20% by next summer 2007. This will obviously reduce the size of the market for CMHC. About 6-8% of homebuyers will no longer need mortgage insurance if the down-payment requirement is changed. With nearly half of all Canadian homebuyers requiring mortgage insurance.
The most homebuyers have little scope in selecting who insures their mortgages.