Home BUYER BEWARE IMPACT OF THE EXPANDED 95% MORTGAGE INSURANCE PROGRAM Canada Morgage & Housing Corporation shoul be commended for expanding the 95% mortgage insurance program to a greater number of qualified purchasers. This change will encourage buyers to enter the marketplace, as more and more will believe, with as little as $5000 down on a $100,000 purchase, they too can own their own home. Purchasers, however, should remember the old saying, BUYER BEWARE. The 95% program increases the purchaser's ability to buy but the real beneficiary of the expanded program could be the seller because of the increase in demand for housing. Although the buyer may now qualify to borrow more, if they pay more than market value for the home, they will be in a worse position. The best way buyers can PROTECT THEMSELVES from paying too much for the home is to make the offer to purchase "subject to an independent, qualified appraisal meeting or exceeding the agreed purchase price." As the person with most on the line, the buyer should take the time to sit down with the appraiser before and after the site inspection. Firstly, to understand what procedure the appraiser will follow in completing the assignment and secondly, to go over the results of the assignment. The most important thing for the buyer, the person on the hook for this deal, is to obtain the best objective opoinion on market value before thy own the property and before it's too late to make changes. Remember BUYER BEWARE and happy home shopping! JEROME M. KIRKLAND, AACI, P. App VICE PRESIDENT APPRAISAL INSTITUTE OF CANADA The Appraisal Institute of Canada is the national association for professional real estate appraisers in Canada. Appraisers with the CRA and AACI, P. App designations are relied upon by lenders, business, private companies and homeowners, as well as governmental departments and judicial tribunals to project an informed opinion on the value of property.

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