Investors Start Your Engines
David Dodge, the former Bank of Canada chief, recently declared that the lending institutions were too loose with the credit strings. He intimated that things should be tightened up before rates were driven up.
He must wonder about the latest CMHC mortgage insurance maneuver. CHMC is extending mortgage insurance 100% for investment properties. This action is a radical departure from past practices concerning investment properties. Typically, a significant down payment was required to facilitate the purchase of any investment property. Now investors can purchase 1, 2, 3, 4 properties with 100%.
Clearly, this new product is designed to encourage investors to continue to invest in the current housing market. The product represents a significant advantage for investors who wish to extend their holdings.
For more information on mortgages in BC, please contact us at the BC Mortgage Action Center.
