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CMHC to Increase Mortgage Insurance Premiums

Edmonton CMHC Rate Increase ImageWell, it seems CMHC is raising it's premiums for new mortgages by approximately 15% starting 1 May 2014. What this will do is increase the cost of buying a new home, estimated to be $5 per month to the average Edmonton home buyer. Not a lot of cash but still, will be your cash. The trick is to have a firm sale on your new home before the deadline. This will beat the premium increase. Here is a quick breakdown:



Loan-to-Value RatioStandard Premium (Current)Standard Premium (Effective May 1st, 2014)
Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%
90.01% to 95% – Non-Traditional Down Payment 2.90% 3.35%

 

Apparently, the other two private mortgage insurance companies Genworth and Canada Guaranty have already matched this increase, too. You can read the full information on CMHC's website. How do YOU think this will affect home buying within Canada? Please comment below or privately thru my contact page.

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