A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.

CMHC Raises Mortgage Loan Insurance Premiums - June 1, 2015

Posted on April 22, 2015 by Tom Bushey

Posted in Buying a Home In Calgary, Mortgages

Effective June 1^st, 2015, the mortgage loan insurance premium for homebuyers with less than a 10% down payment will increase by approximately 15%.

The premium is charged to the bank by CMHC, but banks almost always pass the premium on to the consumer.

For the average Canadian homebuyer who has less than a 10% down payment, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on housing markets.

Premiums for homebuyers with a down payment of 10% or more and for CMHC’s portfolio insurance and multi-unit insurance products remain unchanged. The changes do not apply to mortgages currently insured by CMHC.

This means that if you are buying a home and putting a down payment less than 10%, the premium to insure the mortgage increases from 3.15% of the total amount borrowed to 3.60%. This new increase comes into effect June 1, 2015. For a mortgage of $350,000 it is an additional $1,575 increase to the insurance premium or $7.29 monthly increase.

For more information, see CMHC.

Comments:

No comments

Post Your Comment:

Tom Bushey, Associate Broker & Realtor®

Accredited Seller and Buyer Representative & Condo Specialist

Let's discuss your next home sale or purchase, with no obligation.

Give me a call or text message at: 403-860-8291

Contact Me Now!

THOMAS BUSHEY | RE/MAX iREALTY INNOVATIONS

1301 8 Street SW, Suite 100, Calgary, AB, T2R 1B7 Direct: 403-860-8291 | Tom@TomBushey.ca

In accordance with Canadian Anti-Spam Legislation (CASL), we do NOT give our permission for other commercial enterprises to contact us for any other commercial messages by email, text message, fax or telephone. Required Disclosures: Different commission rates, fees and listing and marketing services may be offered by other RE/MAX franchisees, brokers and associates in Canada. All realty services offered and provided through exclusive independent contract through, and on behalf of, RE/MAX iRealty Innovations. Incentives, inducements, commission rates and representation agreements are offered on behalf of, and with the authority granted by, the brokerage.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.