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Old 01-19-2017, 12:43 PM   #1
Mortgage Made Easy
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Exclamation Breaking: Mortgage Insurance Premiums Increasing on March 17th 2017

More changes!
While it is unfortunate news to share, it was somewhat expected.

CMHC is increasing its homeowner mortgage loan insurance premiums as a result of their regular review of insurance products. New regulatory capital requirements came into effect on January 1, 2017 and require mortgage insurers to hold additional capital. Capital requirements are an important factor in determining mortgage loan insurance premiums.

The new premiums are effective March 17, 2017 and will result in an increase of approximately $5 to the monthly mortgage payment of the average CMHC-insured homebuyer ($250,000 mortgage loan with less than 10% down payment).

Revised Mortgage Loan Insurance Premium Rates are shown in the premium schedule below.



• CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or after March 17, 2017.

• CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.
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Old 03-06-2017, 06:20 PM   #2
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Only 1 week remain before the Mortgage Insurance Premiums increase on March 17, 2017.

Some lenders have set a cut-off date of March 13.

Thinking of purchasing? Contact me today (403-648-1541 / tim@cgymortgage.com) to get approved prior to cutoff dates which is established by lenders.
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Tim & Colton
Mortgage. Made Easy Experts
Canada Mortgage Direct Inc
www.TimLacroix.com

If you have any questions please feel free to PM me or email puckforum@cgymortgage.com

Click here to View current Mortgage Rates

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Old 03-17-2017, 01:46 PM   #3
Calgary14
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So if I'm reading that table correctly it looks like an additional 4% added to the cost of the property for anyone with a 5% traditional down payment, for a net of 1% equity to start?
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Old 03-17-2017, 01:51 PM   #4
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Originally Posted by Calgary14 View Post
So if I'm reading that table correctly it looks like an additional 4% added to the cost of the property for anyone with a 5% traditional down payment, for a net of 1% equity to start?
The premium has increased from 3.6% to 4.0% for purchases with 5% down payment... this is correct. And yes, that means equity start is reduced.
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Tim & Colton
Mortgage. Made Easy Experts
Canada Mortgage Direct Inc
www.TimLacroix.com

If you have any questions please feel free to PM me or email puckforum@cgymortgage.com

Click here to View current Mortgage Rates

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Old 03-17-2017, 01:55 PM   #5
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That's crazy, I didn't know the premiums increased so high. If someone only has a 5% down payment they'd be much better off renting in most cases
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Old 03-17-2017, 01:59 PM   #6
Mortgage Made Easy
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That's crazy, I didn't know the premiums increased so high. If someone only has a 5% down payment they'd be much better off renting in most cases
The premiums have been high for quite sometime... they were increased last spring and once again as of today.

There are plenty of debates over continuing to rent vs buy with 5% down payment. The payments are building equity (forced savings) and if the market you are in has increasing values, you can benefit as well (like Toronto).

But as you mentioned, there are some validity to continuing to rent. There are a lot of personal factors to consider and financial situations / strategies where either has merit... even with just 5% down payment.
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Tim & Colton
Mortgage. Made Easy Experts
Canada Mortgage Direct Inc
www.TimLacroix.com

If you have any questions please feel free to PM me or email puckforum@cgymortgage.com

Click here to View current Mortgage Rates

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