Minister Morneau announces new benchmark rate for qualifying insured mortgagesFrom: Department of Finance Canada
News releaseFebruary 18, 2020 - Ottawa, Ontario - Department of Finance Canada For many Canadians, their home is the most important investment they will make in their lifetime. That is why the Government of Canada has introduced measures to help more Canadians achieve their housing needs while also taking measured actions to contain risks in the housing market. A stable and healthy housing market is part of a strong economy, which is vital to building and supporting a strong middle class. Today, Minister of Finance, Bill Morneau, announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the “stress test.” These changes will come into effect on April 6, 2020. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%. This follows a recent review by federal financial agencies which concluded that the minimum qualifying rate should be more dynamic to better reflect the evolution of market conditions. Overall, the review concluded that mortgage standards are working to ensure that home buyers are able to afford their homes even if interest rates rise, incomes change, or families are faced with unforeseen expenses. This adjustment to the stress test will allow it to be more representative of the mortgage rates offered by lenders and more responsive to market conditions. The Office of the Superintendent of Financial Institutions (OSFI) also announced today that it is considering the same new benchmark rate to determine the minimum qualifying rate for uninsured mortgages. OSFI is seeking input from interested stakeholders on this proposal before March 17, 2020. Quotes“For many middle class Canadians, their home is the most important investment they will make in their lifetime. Our government has a responsibility to ensure that investment is protected and to support a stable housing market. The government will continue to monitor the housing market and make changes as appropriate. Reviewing the stress test ensures it is responsive to market conditions.” Bill Morneau, Minister of Finance Quick facts
Director of Communications Office of the Minister of Finance pierre-olivier.herbert@canada.ca 613-369-5696 Media Relations Department of Finance Canada fin.media-media.fin@canada.ca 613-369-4000 General enquiriesPhone: 613-369-3710 Facsimile: 613-369-4065 TTY: 613-369-3230 E-mail: fin.financepublic-financepublique.fin@canada.ca Stay connected Hybrid Mattress or Memory Foam Mattress: The Pros, Cons & Differences | How to buy a Mattress!10/19/2019
Federal Government Makes it Easier for Middle Class Canadians to Buy their First Home
Mississauga, Ontario, June 17, 2019 All Canadians deserve to have a safe and affordable place to call home. That is why the Government of Canada is introducing an innovative new tool to help middle class Canadians buy their first home. Today, the Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) announced the details of the First-Time Home Buyer Incentive, including the expected launch date. Starting on September 2, 2019, the First-Time Home Buyer Incentive will help middle class families take their first steps towards homeownership by reducing monthly mortgage payments required for first-time homebuyers without increasing the amount they need to save for a downpayment. This program complements other measures taken in Budget 2019 to support first time homebuyers with their downpayment such as increased RRSP withdrawal limit from $25,000 to $35,000 The Government of Canada has allocated $1.25 billion over three years (starting in 2019) for this program. The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000. Budget 2019 also previewed the Shared Equity Mortgage Provider Fund, a five-year, $100-million lending fund to assist providers of shared equity mortgages to help eligible Canadians achieve affordable homeownership. This will support an alternative homeownership model targeted at first-time homebuyers, help attract new providers of shared equity mortgages and encourage additional housing supply. The fund will be launched on July 31st, 2019, and will be administered by CMHC. Quotes: “Through the National Housing Strategy, more middle-class Canadians - and people working hard to join it - will find safe, accessible and affordable homes. Our proposed measures will reduce the monthly mortgage for your first home by up to $286. This will mean more money in the pockets of Canadians and will help up to an estimated 100,000 families across Canada.” — Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation “The First Time Home-Buyer Incentive is designed to benefit those who need more assistance with housing costs, middle class Canadians. Thanks to mortgage payments that are more affordable, many families will have hundreds of dollars more each month in their pockets – money to spend on things like healthy food, sports activities for their kids, or even save for the future.” — Bill Morneau, Minister of Finance Quick Facts about the First Time Homebuyer Incentive:
Associated links:As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn, and Facebook. To find out more about the National Housing Strategy, visit www.placetocallhome.ca. Media contacts:Valérie Glazer Press Secretary Office of the Minister of Families, Children and Social Development 819-654-5546 valerie.glazer@hrsdc-rhdcc.gc.ca Audrey-Anne Coulombe CMHC Ottawa 613-748-2573 acoulomb@cmhc.ca Len Catling CMHC Vancouver 604-737-4029 lcatling@cmhc.ca Angelina Ritacco CMHC Toronto 416-218-3320 aritacco@cmhc.ca |
WelcomePlease check our blog it will be updated periodically. Categories
All
|