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Old 05-22-2015, 02:20 PM   #13
Mortgage Made Easy
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Location: Calgary, AB
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REMINDER -- Mortgage Insurance Premium Rate Changes

Effective June 1, 2015 Mortgage Insurance premiums are increasing.

To be eligible for the current premium rates, all applications for mortgage insurance must be submitted to a lender prior to May 27 and May 28, 2015 (the “Cut-Off Time”). Any applications submitted after the Cut-Off Time will be subject to the new premium rates.

Questions and Answers

Purchase

1. What if a purchase and sale agreement is signed prior to June 1, 2015 and the mortgage application is submitted after the Cut-Off Time?

In this scenario, the new insurer premium rates would apply. Even though the purchase and sale agreement was signed before June 1, 2015, the mortgage insurance application was received after the Cut-Off Time, and therefore the new rates apply.

2. What if the borrower(s) have signed a purchase and sale agreement and require mortgage insurance, however, the closing date is after June 1, 2015, will the current premiums still apply?

As long as the application is received are submitted to the lender prior to the Cut-Off Time, the current premiums will still apply.

3. What if the borrower’s mortgage pre-approval from a lender is dated before June 1, 2015, will it still be eligible for the current premium rates if it doesn’t have a signed agreement of purchase until after the Cut-Off Time?

All applications for mortgage insurance must be submitted to the lender prior to Cut-Off Time with a binding purchase and sale agreement in place to be eligible for current premium rates. Pre-approvals which do not go firm prior to the Cut-Off Time will be re-underwritten at the new premium rates. This may effect loan amounts and/or approvals based on the higher premium amounts added to the debt service calculations.

Changes after the Cut-Off Time

4. If an application was submitted to the lender for mortgage insurance prior to the Cut-Off Time, and the application then gets resubmitted with changes or updates after the Cut-Off Time, will the application continue to be eligible for the current premiums?

As long as the original application was submitted to the lender prior to the Cut-Off Time, current premiums will still apply.
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Tim Lacroix | 403-648-1541
Mortgage. Made Easy Experts
Mortgage Connect
www.TimLacroix.com

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

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