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Mortgage Insurance Premiums Increasing May 1st!

It’s time to get Approved

Mortgage Insurance Premiums Increasing May 1st!


CMHC is increasing the insurance rates for mortgage loans by 15 per cent on average.

The new premiums will go into effect May 1 and apply to all new mortgages, existing mortgages are not affected.

Buyers with less than 20% down payment will be paying more in insurance premiums. Self-Employed clients with no income verification will pay even higher premiums.

The overall cost of buying a home with a small down payment could cost thousands, but CMHC estimates on an average purchase the cost will work out to $5 per month to an average mortgage payments.

Interesting Points:
  • Existing insured mortgages are not affected as long as no new money is added.
  • Changes apply to owner occupied, self-employed and 1-to-4 unit rental property applications
  • Self-Employed applicants who cannot verify income will be hit with the largest increase
  • All the mortgages approved before May 1st will still get current rates.
  • Genworth has announced that they will follow CMHC with the increase, Canada Guarantee has not made an announcement yet

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm
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