Mihir's Market Matters Report

November 2012

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Welcome to the November issue of Mihir's Market Matters Report. Its the first day at work on standard time so everyone please drive extra carefully as you head out home today evening. 

There has been no major movements still on Mortgage rates as they continue to remain historically low these days. The 2.99% fixed for 5 years is back but has got certain limitations on it. Feel free to email me or call on 647-710-7374 to know which Mortgage product is best for your needs.

Snapshot of Best available rates as of 5th NOVEMBER 2012.
3 years - (2.79%)
5 years - (2.99%)
10 years - (3.99%)

Variable - 5 years (Prime - 0.20%) & for 3 years (Prime - 0.35%)

Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

My Motto: Right Advice. First Time, Every Time. 

Bank of Canada Interest Rate

September 5, 2012	1.00 %
October 23, 2012	1.00 %
December 4, 2012	Next meeting date

Source: Bank of Canada

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Bank Prime Lending Rate

September 6, 2012	3.00 %
October 24, 2012	3.00 %
December 5, 2012	Next meeting date

Source: Bank of Canada

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Conventional Mortgage - 5 Year Rate*

September 12, 2012	5.24 %
September 26, 2012	5.24 %
October 17, 2012	5.24 %

Source: Bank of Canada
*Determinant for high ratio mortgage variable qualifying rate

 

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US Federal Reserve Board Discount Rate*

September 12, 2012	0.00 % - 0.25 %
October 24, 2012	0.00 % - 0.25 %
December 11, 2012	Next meeting date

Source: US Federal Reserve
*US Federal Reserve has indicated it will keep this rate until Q4 2014

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Exchange Rate $CDN($US)

September 26, 2012	1.015
October 10, 2012	1.019
October 29, 2012	.9992

Source: Bank of Canada

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Government of Canada Bonds

Bond Type	September 26, 2012	October 10, 2012	October 24, 2012
1 year Treasury Bill	1.09%	1.12%	1.09%
3 year Benchmark Bond Yield	1.16%	1.22%	1.21%
5 year Benchmark Bond Yield	1.31%	1.36%	1.39%
10 year Benchmark Bond Yield	1.75%	1.79%	1.84%

Source: Bank of Canada

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Total New Housing Starts (Seasonally adjusted and annualized)

Province	July 2012	July 2011	August 2012	August 2011	September 2012	September 2011
Newfoundland/Labrador	4,600	4,100	4,060	3,500	3,900	3,500
PEI	1,300	1,200	1,100	900	1,400	1,300
Nova Scotia	3,000	5,700	6,800	3,700	6,100	6,100
New Brunswick	3,300	6,000	3,400	2,800	6,500	5,000
Quebec	53,800	45,600	47,300	41,100	50,300	57,800
Ontario	74,800	75,200	88,300	67,000	72,400	65,600
Manitoba	6,600	7,400	9,300	4,900	8,500	4,500
Saskatchewan	7,900	5,600	9,800	5,800	13,200	9,100
Alberta	33,400	24,300	29,400	29,100	33,400	24,900
British Columbia	25,900	30,000	30,400	25,800	29,500	29,800
CANADA	214,500	205,100	229,800	184,600	225,300	207,600

Source: CMHC Housing Now - October 2011 and October 2012. This seasonally adjusted data goes through stages of revision at different times of the year.

 

GTA Monthly Resale Report for October 2012

 Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011.  

"Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July.  

The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase," said Toronto Real Estate Board (TREB) President Ann Hannah.  

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011.  The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.  

"We continue to see price increases well above the rate of inflation.  Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes," said Jason Mercer, TREB's Senior Manager of Market Analysis.  

  

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Are You Ready To FALL BACK ONE HOUR TONIGHT ?

Turn your clocks back one hour this weekend.
Daylight saving time ends November 4th at 2 a.m.

The weekend most Canadians fall back one hour is also the ideal time to tackle seasonal safety projects. A lot of the routine maintenance on your home and car should be done twice a year, so what better time to start checking items off your "to-do" list?

 

 

 

 

 At the same time better you look at following things around your house,
 

• Replace the batteries in your smoke and carbon monoxide detectors, and test both devices to make sure they are in working order.
  
  Tip: Don't toss the batteries; there may still be juice in them. They can be used in children's toys, media players or electronic devices. Squeeze out every drop of power, then recycle them.
• Clean gutters and downspouts to keep debris from accumulating. This is especially important now that the leaves are falling.
• Make an appointment to have your furnace cleaned and inspected by a qualified technician so it is working properly and efficiently all winter.
• Bring out of hiding, all the winter gear you'll need to clear your walk, like shovels, sand and salt.
• Have your chimney cleaned so your fireplace will be ready for use.
• Go through your medicine cabinet for expired medication. Your pharmacist should be able to either take your old medications or provide you with information about where to dispose of them.
• Inventory your home's first aid kit and replace items that are expired, or replenish items like bandages that may be running low.
• Switch your incandescent lights to compact fluorescent lights (CFLs). Although initially more expensive, CFLs save you money in the long run; they use 75% less electricity and can last up to 10 times longer.

How development charges affecting home buyers in Region of Peel

Region of Peel increased development charge by 99 % that means home buyer pays extra $18,000 for newly built home in Brampton, Mississauga and Caledon.

Of course the development charges need to be paid by the builder. Region of Peel is arguing that, developers should pay their fair share. 
What do you think ? Developers are doing business, of course they are not paying that money out of their pocket, they are going to charge you. What a home buyer should do in this situation ?

• If you are planning to buy home in region of Peel, first consult your bank, and get qualification for that extra $18000.
• Other option is to buy a resale home, in the area you are interested in.
• Down size is other option you can look at. e.g. Instead of 4 bedroom go for 3 bedroom or from detached home to semi-detached home.

http://www.thestar.com/news/gta/article/1261086--peel-development-charge-increase-means-homebuyers-pay-extra-18-000

Accelerated Bi-Weekly Mortgage Payments

Do you know there are several type of mortgage repayment frequencies ?

You might have heard about the standard monthly payments but what's semi-monthly or accelerated bi-weekly? Which one can save you the most amount in interest and which one can pay your mortgage off sooner? 

• Lets use this example:

Mortgage Amount	$100,000
Interest Rate	5
Amortization Period	25 years
Mortgage Payment	$581.60

• Monthly Mortgage Payments

-Monthly payments are just that, payments made once per month or 12 payments per year.
-Semi-monthly means payments are made on the 1st and the 15th of  each month. You are making a total of 24 payments in the year.
-Based on our example, 
-Monthly payments works like -  $6,979.20 ($581.60 x 12).
-Semi-monthly payments still only add up to $6,979.20. ($290.80 x 24), the same as if you made monthly payments of $581.60.  
-Under this repayments option, it will take 25 years to pay off the mortgage in our example.

• Accelerated Bi-Weekly Mortgage Payments

-Accelerated bi-weekly mortgage payments are a bit different. The difference between semi-monthly payments and accelerated bi-weekly payments is that,

• Semi-monthly payments have 24 payments per year
• Accelerated bi-weekly payments have 26 payments per year. 
• You are now making payments every two weeks (26 weeks per year) and not twice per month (24 payments per year). 

-To calculate your accelerated bi-weekly payment, take the monthly mortgage payment, divide it by 2 and multiply it by 26 (every 2 weeks).

-Using the example, you're total annual mortgage payment is $7,560.80 (($581.60 / 2 = $290.80) x 26) 

-Essentially you're making one more payment per year ($7,560.80 - $6,979.20 = $581.60). 

-By making accelerated bi-weekly payments, you will be saving money on interest and reducing you're amortization period.

• What happens to my mortgage?

The following chart shows the impact on you're mortgage between monthly payments, semi-monthly payments and accelerated bi-weekly payments.

	Monthly Payment	Semi-monthly	Accelerated Bi-Weekly
Mortgage Amount	$100,000	$100,000	$100,000
Interest Rate	5.00%	5.00%	5.00%
Amortization Period	25 years	25 years	21.43 years
Mortgage Payment	$581.60	$290.80	$290.80
Interest Paid	$74,481.49	$74,301.97	62,044.18
Savings		$179.52	$12,437.31

 If you think this has answered your questions…please leave the feedback and question you have about real estate…I would be more than happy to answer you…. 

YOU CAN REACH ME AT - 647-281-3424

New Time-Of-Use Hydro rates from November 1st 2012 onward in Ontario

Is Your Home Winter Ready ?

The leaves are falling, there's a nip in the air—which means that winter's not far away. Before the snow flies, use our checklist to make sure your house is winter-ready.

• Shut-off water valves -  Locate water valves for backyard and garage (usually in the basement) and turn off, open outside valve and drain them. This will protect you pipe from bursting.
• Add weatherstripping to doors and windows. Don't let your heat escape through small cracks and gaps-seal drafty spaces using weatherstripping or caulk. Here are more helpful tips on sealing up air leaks in your home.
• Check your insulation. If you're in an older home, you may want to supplement the insulation that's already there, or add insulation to un-insulated walls. This will help keep heat in and moisture out.
• Clean your dryer vent. Inside and out. If you have a gas dryer, unplug it and shut off the gas supply at the appliance shut-off valve. Unhook the tube that leads to the vent and clean out as much lint as you can. If you have a wet/dry vac, tackle your exterior vent as well.
• Inspect your roof and chimney, and do any repairs that are needed. Look for cracked shingles, crumbling masonry and damaged or missing flashing. While you're looking at your chimney, take a look at your fireplace as well—make sure the damper opens and closes easily, and get the chimney cleaned if you haven't already this year.

Best Mortgage Rate

BEST RATES as of 10th OCTOBER 2012

5 years fixed @ 2.99%

3 years variable @ Prime - 0.35%

5 years variable @ Prime - 0.20%

Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

My Motto: Right Advice. First Time, Every Time.

HGTV seeks Home Owner for New TV Show

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Affordable Home Ownership in Region of Peel

What is the Affordable Home Ownership Program?

For Limited time Region of Peel has again started Affordable Home Ownership Program. This program is First Come First Serve Basis
So if you are looking forward to buy your dream home in Region Of Peel (Brampton, Mississauga and Caledon)

The Region of Peel’s Home in Peel Affordable Ownership Program is designed to provide low-to-moderate income residents who are currently renting a unit with the opportunity to qualify for down payment loan assistance.

This program will assist eligible applicants who have a total gross (pre-tax) household income of $80,000 or less to purchase a home in the Region of Peel (Brampton, Caledon or Mississauga) that does not exceed a purchase price of $280,000.

Participant Eligibility

• Applicants must be 18 years of age or older
• Applicants must not own or have an interest in another residential property in Canada or elsewhere
• The home must be the sole and principal residence of the purchaser
• The applicant must currently be renting and looking to buy a sole and principal residence
• The applicant must have a total gross (pre-tax) household income not exceeding $80,000
• The applicant must be able to obtain a mortgage pre-approval from a Canada Mortgage and Housing Corporation (CMHC) approved and insured lender and must submit it with their application
• Participants may not include anticipated rental income from a portion of the property in order to obtain a mortgage
• The applicant must be able to pay all additional closing costs
• The applicant must supply all necessary documentation to the Region of Peel

Eligible Homes

Due to unpredictability of closing dates, new homes will not be eligible for purchase under the Home in Peel program.

Participants may purchase:

• resale detached homes
• semi-detached
• row homes
• town (condominium or freehold) stacked homes
• high-rise condominium units

Duplex, triplex or mobile homes do not qualify as eligible homes under the Home in Peel program.

For a home to be eligible, it must be modest in size relative to the community, in terms of floor area and amenities, as determined by the province or the service manager.

The maximum house price for program participants in the Region of Peel is$280,000.

The Down Payment Loan

The down payment assistance will be up to $15,000.

Repaying the Loan

The down payment loan is for a 20-year period and no interest is charged if:

• The home remains the sole and principal residence of the owner. The home is not to be rented, leased or sold in the 20-year period.
• On the 20th anniversary date of the agreement, the loan is automatically forgiven provided there has been no default.

Repayment of the loan is required when:

• The home ceases to become the sole and principal residence of the owner.
• The home is sold before the 20-year affordability period.

If during the 20 year affordability period, the property is resold, transferred, or otherwise disposed, and an appreciation in value is incurred, the purchaser will be required to pay back to the Region of Peel the loan and 5% of the appreciation.

If the home is sold for less than the original purchase price, the owner does not pay appreciation and the principal is forgiven (the sale must be at fair market value and must be an arm’s length transaction).

Other Costs for the Purchaser

The purchaser is expected to pay the following:

• Closing costs
• Inspection of the home prior to firm offer of purchase and sale
• Lawyer’s fees
• Land Transfer Tax

What is Needed to Qualify for the Home in Peel Program?

Interested applicants must complete the application form (PDF 333 KB, 8 pages) and provide all supporting documentation and return it to the Region of Peel.

As funding for this program is limited, participants are selected on a first-come, first-serve basis. Once an application is received, a letter confirming eligibility will be sent within 15 business days. There is no wait list for this program; once all funding has been allocated, all remaining applicants will be notified by letter that the program has ended.

Check Real Estate Price Growth In Your Area

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

GTA REALTORS(R) RELEASE MONTHLY RESALE HOUSING FIGURES FOR SEPTEMBER 2012

Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to September 2011. 

"While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing," said Toronto Real Estate Board President Ann Hannah.

September average selling prices were up compared to last year for all major home types. 

"Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes," said TREB's Senior Manager of Market Analysis, Jason Mercer.

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Do-It-Yourself, Sell Your Dream Home Yourself !

If you are like most people, you have thought, “How hard could it be to sell my house? Let’s just do it ourselves.”

It is a legitimate thought; the average seller has access to most every avenue that the agent does.

You have signs, websites, Craigslist, Kijiji and plenty of other places to advertise. The problem is, the average seller thinks that the only thing they pay a real estate agent for is the advertising and the “getting it under contract part.” While that is a large part of what we do, it isn’t our expertise.


We are trained both in the classroom and in the real world on getting your house under contract and keeping it that way until you have gone to closing and had it recorded under the buyer’s name. That is where an agent earns their commission.

  Especially in a buyer’s market, sellers can get beat up pretty badly if they aren’t well represented, or if they just do not know any different. Buyers are expecting to get great deals, and for that seller need to keep  their home in top-notch condition. 

Again if something unexpected discovered during home inspection, then buyer can further press you. So what typically happens is a buyer comes in and negotiates with you to get you to your bottom dollar, then asks for so many repairs that you net less than you expecting, but you are too scared to say no to the repairs because of fear of losing that oh-so-precious buyer. 

The road from getting your house under contract all the way to the closing table is long and slippery. You have to be able to pull yourself out of the situation emotionally and work through every obstacle from a third party’s perspective. It is not easy, but it can be done.

If you are considering selling on your own, let me give you some tips that will help guide you in the right direction. 

First, make sure that you are being safe. Do not schedule showings if you are going to be home alone if at all possible. Better yet, have each potential buyer email you a pre-approval letter, which will qualify them pretty quickly, and keep you from wasting your time with those people who just want to see what kind of carpet you have. 

Second, read up on what information you are required to tell the buyer. In all situations you are better off to disclose than to keep any information hidden, especially when it comes to defects or material facts. A material fact is anything that would affect the buying decision. Is it something that you would want to know? If so, tell it.

Next, consult the advice of professionals; do not write up a contract on a napkin. Have an attorney do it, talk to your accountant, make sure that you are making good decisions. 

Finally, know your rights as a seller. Yes, most things are negotiable, but you do have the right to say no. Sometimes it is worth losing the buyer.

Do you know how your home is heated during winter ? Forced Air Gas Furnace

The forced-air gas furnace is the most common heating system in North America. It has undergone many improvements over the past few years making them efficient, quiet and reliable.

Efficiency
Most of the heat generated when a gas furnace burns goes into the house, but some of the heat goes up the chimney. Furnace efficiency refers to the amount of heat delivered into the house relative to the total amount of fuel energy used. Another way to look at it: if you burn $1 worth of gas and you get 80 cents worth of heat into the house, your furnace is operating at 80% efficiency. This quotient is often called AFUE, or annual fuel utilization efficiency.

Furnaces are classified into three efficiency categories, each correlating to a specific design: conventional, mid, and high efficiency designs.

Conventional
A conventional furnace is the oldest type and is generally 55% to 65% efficient. In other words, a great deal of heat is lost up the chimney during the operation of the furnace. Conventional furnaces are no longer made but many still exist in homes.

Mid
Improvements in design led to the mid-efficiency furnace, operating at around 80% AFUE. The big development, the induced draft fan, sucks the combustion products through the furnace and discharges them into the flue. No longer reliant on natural draft to run, the heat exchanger design was optimized in order to extract more heat before the combustion gasses went up the chimney.

High
Further developments in furnace design led to the modern high-efficiency furnace, operating at an AFUE of 90 to 97%. A high-efficiency furnace has two heat exchangers, the second’s job being to condense the gases, thus extracting most of the heat that would otherwise have been lost up the chimney.

Other benefits of a high-efficiency furnace:

• Does not require a chimney: since most of the combustion gases are condensed and trickle down the drain, the remaining (fairly cool) gases can be vented through a plastic pipe directly through the wall of the house.
• Doesn’t burn house-hold air: combustion air is drawn directly from the outside through one plastic pipe and a second plastic pipe discharges the remaining combustion gas to the exterior.

Wagjag Mobile

If u r planning to clean duct I ur home this looks a very good deal

http://wagjag.mobi/cities/1/deals/92006


Ritesh Joshi
647-281-3424
www.riteshtherealtor.com
Sent from my iPhone

What is Grow House ? How do you identify a grow-up operation ?

Yesterday, I showed one of my client a grow house listing, as he was tempted with a lower price of a detached house. The house was used for grow-up operation and bank did certain repairs, however still lot to be done.
So What is a grow-house ? How do you identify it ?

 A marijuana grow house is a home that has been physically altered to facilitate the production of marijuana.  The alterations include cutting into hydro power sources in order to steal the extra electricity needed to power the high-wattage lights that help the plants grow.  The ventilation in the house is often reconfigured to remove the strange smells that are produced by the marijuana plants.  Regular spraying of pesticides, fungicides and herbicides on the plants in very high concentrations also contributes to a chemical contamination of the premises.  And, let's not forget that there is an awful lot of water used on those plants and the resulting moisture generally leaves the house with a serious mould problem.

     

The profit is certainly attractive for the criminals. It is estimated that one residential grow op will house 1,600 plants and produce a $1.6 million profit in one year.  Here are the shockers for the owners of the property: most homeowners' insurance policies will not cover the cost of repairing damage caused by this type of criminal activity, and the estimates from the Insurance Bureau of Canada suggest that the average cost of repairing a home that has been used as a grow op—if it can be repaired at all—is about $40,000.

How can you recognize a marijuana grow house?  The following list is taken directly from the website of the Toronto Police (who, unfortunately, are extremely familiar with the grow house phenomenon).  Consider the following:

• •  The house does not appear lived-in.  Someone visits but only stays for short periods of time.
  •  Activity inside the house seems to take place at odd hours.
  •  The exterior appearance of the property, such as the lawn and small repairs, is neglected.
  •  People using the property often back into the garage and enter the home through the garage.
  •  Garbage is minimal and may contain used soil and plant material.
  •  Windows are covered.
  •  Bright light escapes from windows, and windows are often covered with thick condensation.
  •  There are sounds of interior construction.
  •  Timers are set inside the residence.
  •  There is a strong "skunk-like" odour coming from the property.
  •  Items being brought into the house include soil planters, fans and large lights.
  •  Garbage bags are not left for the regular collection, but are transported away from the property.
  •  In the winter, there is no snow on the roof even when other houses in the area are snow-covered.
  •  There are unusual amounts of steam coming from the house vents.

A surprising indicator that a property might be a grow op is not that it smells of skunk but that it smells too good.  Criminals often overuse fabric softener in dryers and vents in order to mask the smell of the plants.  So, an excessive or frequent smell of fabric softener in the air may actually be a clue that the property is a grow op.  

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Mortgage Rate Set to Go Hire...Have a Look At Rates Below

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

How Realtors Help

Looking for Best Mortgage Rate ? It's Here

GTA Monthly Real Estate Sales - August 2012

Greater Toronto Area (GTA) REALTORS® reported 6,418 sales through the TorontoMLS system in August 2012, representing a year-over-decline of almost 12.5 per cent compared to 7,330 sales reported in August 2011. The number of new listings reported in August was down by 5.5 per cent compared to the same period in 2011.

The average selling price for August 2012 transactions was $479,095 – up by almost 6.5 per cent compared to August 2011. The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15 per cent. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.

“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”

CMHC and Home Buyer

The housing market in GTA has started moving to become a buyer friendly one. There are so many buyers waiting for this opportunity. I know still the prices are not that affordable and difficult to come up with 20 % down payment to avoid CMHC insurance premium.
Oh...Let me explain you what does it mean by CMHC and how is it helpful to a home buyer.
CMHC stands for? Canadian Mortgage and Housing Corporation.

You might have heard that, you can buy your own dream home with 5 % downpayment and most importantly you are still eligible for banks preferred mortgage rate. Isn't it amazing ? Yes it is amazing our home land Canada always there for its people.

Yes, it is possible through the CMHC insurance. If you don't have 20 % down payment to buy your dream home in Canada, you can purchase insurance from CMHC and then bank lands you money and you can be in your dream home. 
How is works ? ..CMHC takes the buyer under it's huge umbrella. That way CMHC assures the financial institute (bank), that due to unavoidable circumstances if  buyer defaults, financial institute(Bank) is not at risk of loosing money. So the bank can easily land money to those buyers at LOW rate.

Refer table below for rates you need to pay.

Loan-to-Value	Premium on Total Loan		Premium on Increase to Loan Amount for Portability and Refinance
	Standard Premium	Self-Employed without 3rd Party Income Validation	Standard Premium	Self-Employed without 3rd Party Income Validation**
Up to and including 65%	0.50%	0.80%	0.50%	1.50%
Up to and including 75%	0.65%	1.00%	2.25%	2.60%
Up to and including 80%	1.00%	1.64%	2.75%	3.85%
Up to and including 85%	1.75%	2.90%	3.50%	5.50%
Up to and including 90%	2.00%	4.75%	4.25%*	7.00%*
Up to and including 95%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

On the other end those buyers who have 20 % or more toward down payment of the house price, they don't need to buy CMHC Insurance.  

Hope this article would have answered all the questions you had about CMHC Insurance.

Rate has been given in above table. If you have any questions regarding donot hasitate to call me or email me.
Best regards.

Ritesh Joshi

RRSP...How can you use to buy your FIRST HOME IN CANADA ?

One of my client last week asked me questions about RRSP for first time home buyer…What are the benefits……..try to read whole article for all info…

Qualified buyers (as described below) may borrow INTEREST FREE FOR 15 YEARS from RRSP savings up to $25,000 per buyer (up to $50,000 per buying couple) towards the cash down payment on the purchase of a residence.

R.R.S.P. HOME BUYER PLAN ("RRSP PROGRAM") (Important information about the RRSP Program)

FIRST TIME BUYER:You must be a first time home buyer or you (or your spouse or common law spouse) must not have owned a home that you occupied in the last five (5) years. Provided you satisfy all requirements, you may re-activate the program. Before withdrawing RRSP funds, you must have a written agreement to purchase a home.

PRINCIPAL RESIDENCE: You must use the home as your principal residence in Canada within one year of completing the purchase.

RESIDENT OF CANADA: You must be a resident of CANADA for the period between the date of withdrawal of RRSP funds and the closing date of the house purchase.

ANY HOME (NEW OR RESALE): The home can be new from the builder or resale.

NO MONEY OWED FOR PRIOR RRSP BORROWINGS: At the time of the RRSP withdrawal, you must NOT owe any money to your RRSP for a prior borrowing from RRSP to buy a home.

90 DAY DEPOSIT; R.R.S.P. funds must have been on deposit for at least 90 days before they can be used under the program.

WITHDRAW RRSP WITHIN 30 DAYS OF COMPLETING HOME PURCHASE: RRSP funds cannot be withdrawn later than 30 days after the house purchase is completed and if multiple withdrawals, they must be made in the same calendar year or in January of the next year.

FUNDS FOR ANY USE: The funds can be applied to the down payment, land transfer tax, legal fees and disbursements, improvements to the home, even furniture and appliances.

MAXIMUM $25,000.00 PER BUYER: You can borrow up to a maximum of $25,000.00 from your R.R.S.P. tax free. Maximum for two spouses (or any 2 buyers) is $50,000.00. Any such qualified withdrawal from RRSP is not subject to tax at time of withdrawal.

PAY BACK: After an initial grace period of the year in which the withdrawal was made (plus one more full calendar year), you are required to pay back the funds borrowed (beginning in the second year following the year of withdrawal) over a period of 15 years by depositing 1/15th of the amount withdrawn, annually to your R.R.S.P. Prepayments are allowed at any time without penalty. However, if you miss a payment for any given year, you will not be allowed to pay it back and it will be included in your taxable income for that year. If a person paying back dies or becomes a non-resident or becomes 70 years of age, additional repayment rules apply.