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.