QPL Articles
CMHC’s new mortgage premiums kick in in March
By Jonathan Ablett | February 22, 2017
In mid-January, CMHC raised the premiums for high-ratio and other CMHC-insured mortgages. The changes come into effect March 17. Sold as a modest increase to monthly payments, CMHC has advised that the typical Canadian mortgage of roughly $250,000 would see a monthly increase in premiums of around $5. However, when reviewed from anything other than monthly payments, the premiums have actually changed quite substantially.
For a down payment of 15%, for example, the total premium raises from 1.8% of the amount of the loan to 2.8% – a significant increase in the cost of insurance of 56%, and in this respect, the “safest” range of the insured mortgages have been hit the hardest.
For a down payment of 10%, the change is from 2.4% to 3.1%.
For a down payment of 5%, the change is from 3.6% to 4.0%.
See more here: Canadian Mortgage & Housing Corporation