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Buying a home in 2017? Save money and purchase before March 17!

Blog by Kim Twohey | January 19th, 2017

Is buying a home on your 2017 to-do list?  If you have been thinking about it, you might want to get off the fence and into a home with your own white picket fence before March.  Canadian Mortgage Housing Corporation (CHMC) recently announced that mortgage insurance premiums will be increasing effective March 17, 2017.

Home buyers who put down any amount less than 20% of the house purchase price are required to pay mortgage insurance.  CMHC calculates the insurance premiums on the amount that the Buyer borrows.  The larger the loan, the higher the rate.  CMHC provided the following comparison of current premiums and the new premiums effective March 17, 2017. 

Loan to value ratio

Current premium

Premium effective

March 17, 2017

Up to and including 65%



Up to and including 75%



Up to and including 80%



Up to and including 85%



Up to and including 90%



Up to and including 95%



Up to 95% (Non-traditional down payment)




While CMHC does not anticipate that the changes will significantly impact most people’s ability to purchase a home, purchasing before the changes take effect will save you money. 

Even though January traditionally sees a lower inventory of homes for sale, there is currently a wide range of excellent homes for sale in Calgary.  The cooling off of the Calgary housing market in 2016 has made home ownership more affordable and achievable for buyers, especially first-time buyers.  If you are considering purchasing a condo, you will be excited to learn that the condominium market has softened considerably, with prices falling six per cent in 2016.  This change in the market makes right now the perfect time to buy a condo and avoid the upcoming CMHC premium increase. 

If you are ready to get serious about buying a home before spring, one of the best steps you can take is to contact a qualified mortgage broker.  Your mortgage broker can help you determine how much house you can afford and can guarantee rates for 90 or 120 days.  Happy house hunting!