CMHC mortgage insurance premiums have been increased.

Monday February 13th, 2017

CMHC mortgage insurance premiums have been increased.

January 17th, 2017, the CMHC announced an increase in their mortgage insurance premium rates as of March 17th 1st of this year.

This means that if you submit your insured financing to your financial institution after March 17th, 2017, your mortgage insurance will be higher.

Here below are two examples:

1) $300,000 purchase with 5% cash down, i.e. $15,000
Insurance premium BEFORE March 17th, 2017 : 3.60% = $300,000-$15,000 = $285,000 x 3.60% = $10,260
Insurance premium AFTER March 17th, 2017: 4.00% = $300,000-$15,000 = $285,000 x 4.00% = $11,400


2) $300,000 purchase with 5% non traditionnal* cash down, i.e. $15,000
Insurance premium BEFORE March 17th, 2017: 3.85% = $300,000 -$15,000 = $285,000 x 3.85% = $ 10,972.50
Insurance premium AFTER  March 17th : 4.50% = $300,000 -$15,000 = $285,000 x 4.50% = $12,825


Below is a table of all the changes.

tablean-en

Don’t hesitate to contact us by phone, email or social media for more information on these changes.

*Non-Traditionnal Down Payment: Any source that is arm's length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts, 100% sweat equity, lender cash back incentives.

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