Home Buyers Get a Break
The Federal Government is now allowing lending institutions to offer 20% down payment mortgages without requiring the borrower to purchase mortgage insurance. This is a drop from the 25% it was before. In addition, current home owners will be permitted to borrow up to 80% of the value of their home without purchasing mortgage insurance. A survey conducted by the Royal Bank of Canada indicated that the reduction in down payment of the sort implemented by the Bill would make about 1 in 5 prospective home buyers more inclined to buy a home.