Federal Budget, Upcoming Changes, What You Need to Know!
The long awaited Federal Budget has finally been received in the House of Commons. This comes after the unusual announcement made in January that Finance Minister Joe Oliver’s first budget, which would typically be presented in February or March, would not be delivered until April amid falling world oil prices. It’s apparent that this budget has a lot more to do with politics than spending and budget cuts since the federal election is only months away.
A highlight of the budget is the increase in the allowable TFSA contributions from $5500 to $10000 which will be well received by Canadians. Mr. Oliver also proudly stated “this budget is balanced”; the surplus is only 1.4 billion which is subject to what direction world oil prices move.
Canada Mortgage and Housing Corporation (CMHC), which is the crown corporation that plays a leading role in housing programs, just recently announced that it has increased the insurance premium on their 95% loan to value program. This means that if you are buying a home and putting down less than 10% down payment, the premium to insure the mortgage increases from 3.15% of the total amount borrowed to 3.6%. This new increase comes into effect June 1, 2015. The good news is that you can buy a home right up until May 31, 2015 and still be charged the lower premium regardless of when you move in.
As a mortgage professional, my role is to keep you up-to-date on all the changes that are taking place and how they affect you and your mortgage decisions. With the access I have to a large variety of lenders competing for your business and current CMHC premiums, now might be the best time to save if you were thinking of buying your first or second home.