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canuckguy · 04-22-2005, 03:54 PM

http://www.canoe.ca/NewsStand/London...07790-sun.html

A good bottom line at Canada's national housing agency means a $200-million annual break for first-time home buyers and for affordable housing in London and across the country, The Free Press has learned. Changes announced today by federal Housing Minister Joe Fontana could leave as much as $1,500 in the pockets of the average first-time homebuyer in London, one builder predicts.

Fontana will announce today he's converting a $1-billion surplus at the Canada Mortgage and Housing Corp. (CMHC) into a $200-million annual boost for affordability.

Reduced and waived mortgage loan insurance and free title protection are among the measures Fontana's introducing.

His moves were greeted with enthusiasm by housing activists in London who say Fontana's measures will prove helpful, but they are anxious to see details he will spell out today.

Major beneficiaries are:

- First-time buyers who will see a 15-per-cent cut in mortgage insurance, worth $600 on the average CMHC mortgage of $120,000.

- Not-for-profit and housing co-operatives will see mortgage insurance waived on new projects, creating savings of about $300,000 on mortgage loans of $5 million.

- Private developers who create new rental housing in partnerships with CMHC will also see a 15-per-cent reduction in mortgage insurance premiums.

- Homebuyers concerned about ensuring they have clear title will be given no-cost title insurance that would otherwise cost about $200 a year.

Carl DiNardo, president of London builder Covington Group, said combining the title insurance with the break on loan insurance will likely mean a saving of $1,500 for first-time buyers. "I think this is great. We hope this maintains the market, if not improve it."

Fontana told The Free Press he is anxious to continue his drive to improve the supply of affordable housing.

"The bottom line is CMHC had a very good year," Fontana, MP for London North Centre, said yesterday. "Home ownership is up. Home construction is up. People are buying homes like crazy because the economy is doing well."

In the year ended March 31, when CMHC racked up its $1 billion surplus, it approved mortgage loan insurance for more than 650,000 homes or rental apartments.

On the average loan of $120,000, mortgage insurance totalled about $3,900 before Fontana's 15-per-cent cut.

Insurance is required by some lenders who want protection in the event buyers default after making down payments of as little as five per cent or nothing in some cases.

Fontana said he will look at other ways to use CMHC to help people buy their first homes.

The housing minister highlighted as "pretty big" the help for non-profit groups who provide rental accommodation for those most in need. The groups won't have to pay mortgage insurance, leading to lower project costs and rents.

"That's who I want to help, those people who are most vulnerable," Fontana said.

Bob Sexsmith, a Londoner who is past chairperson of the London Homeless Coalition, said the moves by Fontana will be welcomed by the dozen or so groups in the early stages of planning non-profit or co-operative housing in the city.

"I'm optimistic because Joe understands the need and is frustrated by the provincial government has not yet signed onto his housing framework," he said.

Sexsmith hopes details in the plan allow operators of co-ops to pass along their savings in the form of rent reductions for tenants.

Coun. Susan Eagle, chairperson of city council's housing leadership committee, is also anxious to see details, but fears the new breaks won't occur until after Fontana reaches his much-delayed housing agreement with Ontario.

Giving developers a 15-per- cent break on insurance premiums will help them reduce costs and keep rents moderate, Fontana said.

He said he expects cheques of $600 will be issued to homebuyers whose deals have not yet closed and to other buyers in the six months it's likely to take for banks to update their practices and software.

Aside from free title protection that begins this fall, all measures kick in today and would be unaffected by any moves that might lead to the defeat of the government, Fontana said.

He said he is inching closer to the housing framework deal with Ontario that would unlock another $300 million for affordable housing.

Well looks like it may help a bit, nice break for first time buyers. I'll still have to pay effing title insurance cost but should get a break on other fee's. nice to see cmhc making such a huge profit...cough cough...

04-22-2005, 03:54 PM	#32 (permalink)
canuckguy I read your emails. Location: earth	http://www.canoe.ca/NewsStand/London...07790-sun.html A good bottom line at Canada's national housing agency means a $200-million annual break for first-time home buyers and for affordable housing in London and across the country, The Free Press has learned. Changes announced today by federal Housing Minister Joe Fontana could leave as much as $1,500 in the pockets of the average first-time homebuyer in London, one builder predicts. Fontana will announce today he's converting a $1-billion surplus at the Canada Mortgage and Housing Corp. (CMHC) into a $200-million annual boost for affordability. Reduced and waived mortgage loan insurance and free title protection are among the measures Fontana's introducing. His moves were greeted with enthusiasm by housing activists in London who say Fontana's measures will prove helpful, but they are anxious to see details he will spell out today. Major beneficiaries are: - First-time buyers who will see a 15-per-cent cut in mortgage insurance, worth $600 on the average CMHC mortgage of $120,000. - Not-for-profit and housing co-operatives will see mortgage insurance waived on new projects, creating savings of about $300,000 on mortgage loans of $5 million. - Private developers who create new rental housing in partnerships with CMHC will also see a 15-per-cent reduction in mortgage insurance premiums. - Homebuyers concerned about ensuring they have clear title will be given no-cost title insurance that would otherwise cost about $200 a year. Carl DiNardo, president of London builder Covington Group, said combining the title insurance with the break on loan insurance will likely mean a saving of $1,500 for first-time buyers. "I think this is great. We hope this maintains the market, if not improve it." Fontana told The Free Press he is anxious to continue his drive to improve the supply of affordable housing. "The bottom line is CMHC had a very good year," Fontana, MP for London North Centre, said yesterday. "Home ownership is up. Home construction is up. People are buying homes like crazy because the economy is doing well." In the year ended March 31, when CMHC racked up its $1 billion surplus, it approved mortgage loan insurance for more than 650,000 homes or rental apartments. On the average loan of $120,000, mortgage insurance totalled about $3,900 before Fontana's 15-per-cent cut. Insurance is required by some lenders who want protection in the event buyers default after making down payments of as little as five per cent or nothing in some cases. Fontana said he will look at other ways to use CMHC to help people buy their first homes. The housing minister highlighted as "pretty big" the help for non-profit groups who provide rental accommodation for those most in need. The groups won't have to pay mortgage insurance, leading to lower project costs and rents. "That's who I want to help, those people who are most vulnerable," Fontana said. Bob Sexsmith, a Londoner who is past chairperson of the London Homeless Coalition, said the moves by Fontana will be welcomed by the dozen or so groups in the early stages of planning non-profit or co-operative housing in the city. "I'm optimistic because Joe understands the need and is frustrated by the provincial government has not yet signed onto his housing framework," he said. Sexsmith hopes details in the plan allow operators of co-ops to pass along their savings in the form of rent reductions for tenants. Coun. Susan Eagle, chairperson of city council's housing leadership committee, is also anxious to see details, but fears the new breaks won't occur until after Fontana reaches his much-delayed housing agreement with Ontario. Giving developers a 15-per- cent break on insurance premiums will help them reduce costs and keep rents moderate, Fontana said. He said he expects cheques of $600 will be issued to homebuyers whose deals have not yet closed and to other buyers in the six months it's likely to take for banks to update their practices and software. Aside from free title protection that begins this fall, all measures kick in today and would be unaffected by any moves that might lead to the defeat of the government, Fontana said. He said he is inching closer to the housing framework deal with Ontario that would unlock another $300 million for affordable housing. Well looks like it may help a bit, nice break for first time buyers. I'll still have to pay effing title insurance cost but should get a break on other fee's. nice to see cmhc making such a huge profit...cough cough...