CMHC raises premiums - Tips from your local South Surrey/White Rock Realtors
Blog by Bettina Reid | February 28th, 2014
CMHC (Canada Mortgage and Housing Corporation) announced today that they will be raising the insurance premiums in order to insure mortage loans by up to 15% depending on how much money a Buyer has to put down on their mortgage.
Many home Buyers only have 5-10% to put down on their mortgage, unless they have a 20% downpayment then they will need to have their mortgage insured by 1 of the 3 mortgage insurance companies that we have here in Canada - CMHC, Genworth or Canada Guaranty. It will be interesting to see if the other 2 companies follow suit.
Overall this increase could add thousands of dollars to the overall purchase price when amortized over a number of years. CMHC estimates this increase will only add on average about $5/month.
Certainly nothing to panic about and isn't expected to affect the housing market adversely. But for those Buyers concerned about having mortgage insurance premiums it is good information to have.