Nothing has been confirmed or put forward, but several sources have stated that Ottawa has been evaluating their options both for the minimum payment and also additional rules for expensive housing (aka Toronto and Vancouver).
Even with Vancouver and Toronto prices remaining stagnant, and Alberta’s battle with oil prices significantly effecting their housing market, the Canadian average home prices rose for the fourth straight month in a row.
On a somewhat related note Prime Minister Stephen Harper recently claimed that Canadian’s mortgage debt loads are “very manageable”. However, he did acknowledge that: “There are some people who are overexposed, so we encourage people to exercise caution in terms of their borrowing.”
Most mortgage providers require mortgage loan insurance if your down payment is less than 20%. The CMHC is increasing the insurance premium by 15% starting June 1, 2015 for those buying property with less than a 10% down payment. Everyone else and already existing mortgages remain unaffected.
From the CMHC website:
As a result of its annual review of its insurance products and capital requirements, CMHC is increasing its homeowner mortgage loan insurance premiums for homebuyers with less than a 10% down payment. Effective June 1, 2015, the mortgage loan insurance premiums for homebuyers with less than a 10% down payment will increase by approximately 15%.
For the average Canadian homebuyer who has less than a 10% down payment, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on housing markets.
Premiums for homebuyers with a down payment of 10% or more and for CMHC’s portfolio insurance and multi-unit insurance products remain unchanged. The changes do not apply to mortgages currently insured by CMHC.