||Increase in CMHC insurance premiums
CMHC is increasing its homeowner mortgage loan insurance premiums as a result of our regular review of insurance products and to reflect the new OSFI Capital Requirements for Federally Regulated Mortgage Insurers that came into effect on January 1, 2017.
The new premiums are effective March 17, 2017 and will result in an increase of approximately $5 to the monthly mortgage payment of the average CMHC-insured homebuyer.
At LTV (loan-to-value) of 95% or lower, the premium will increase from 3.6% to 4%.
The LTV of 90% or less, the premium will go from 2.4% to 3.1%.
For a full list of changes, please visit www.cmhc.ca
||Which renovations go right to your bottom line?
Updated kitchen - The kitchen is almost always the heart of the home, so it`s no surprise that kitchen renovations consistently provide the best return on your renovation investment.
A sparkly bathroom - Bathroom renovations are also very reliable when it comes to boosting the overall value of your home.
Fresh painting - Whether it`s inside or outside, a fresh coat of paint can work wonders on the overall impression of your home.
Focus on decor - Updating lighting and plumbing fixtures, counter tops, and replacing worn flooring or refinishing hardwood floors are also definite ROI winners.
||Bank of Canada holds the key interest rate steady
As expected, the Bank of Canada announced on March 1st that it is holding the overnight rate at 0.5%, noting that "the global and Canadian economies have been consistent with the Bank`s projection of improving growth" although "exports continue to face ongoing competitive challenges" and that even with gains in employment, there still is "subdued growth in wages.
As uncertainties continue to weigh on the economy, the Bank "judges that the current stance of monetary policy is appropriate."
We expect to see interest rates staying low in Canada well into 2020. The Bank of Canada believes it must continue its monetary policy of ultra-low rates to control inflation, stimulate other sectors of the economy besides housing and spur our Canadian export market.