  |
| April 26, 2005 |
First Time Home Buyers To Benefit >From CMHC Premium Reduction
Effective April 22nd, 2005 CMHC reduced the premium rate on all homeowner applications with a loan to value ratio between 90.01% and 95% from 3.25% to 2.75% and reduced the premium rate on its Flex Down product from 3.40% to 2.90%.
For a homebuyer with a $120,000 mortgage and five per cent down, the benefit would be a savings of $600. Combined with the premium reductions of two years ago, the homebuyer is saving $1,200 on the same transaction.
When a borrower buys or builds an energy-efficient home or makes energy-saving renovations to an existing home, they are also eligible for a further 10 per cent refund on their mortgage loan insurance premium as announced last year.
CMHC will issue refunds to homebuyers during a six-month transition period to provide financial institutions the time needed to update systems to incorporate these costs savings directly.
Visit CMHC's web site www.cmhc.ca to obtain more information on this initiative and other products, services and publications or call CMHC at 1-800-668-2642.
--------------------------------------------------------------------------------
Thank you very much. I appreciate your business and that you refer others to me!
Garth Ellis AMP
Your Mortgage Representative
www.garthellis.com
email: garthellis@invis.ca
Phone: (604) 739-0320
Fax: (604) 739-0334 |
|
|
