Miguel S. and his family purchased a home in 2016 from a builder in the township of Seneca, Ont. It will be completed by 2018. But they faced a couple of setbacks since.
First, the CMHC insurance premium increased in 2016 and Miguel was unable to secure approval to lock in the premium before the increased, because he no longer qualified for financing. They were going to take a five-year term at a fixed rate of approximately 2.79 per cent and they qualified. However, the new government rules require they qualify on the benchmark rate of 4.64 per cent. Their affordability ratios are now too high. So, Miguel is relying on their mortgage broker to work out something. In the meantime, he’s hoping his story will get the government to listen to those Canadians who are trying to buy a home.