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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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Old 03-17-2017, 01:46 PM   #3
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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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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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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
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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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Click here to View current Mortgage Rates

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Old 02-10-2018, 10:55 PM   #7
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Bump!

I had a general question about Mortgage insurance but didnt want to start up a new thread. When I got a mortgage, I only did so with 5% down and therefore had to get CMHC insurance. Now, when my mortgage is up for renewal, could I ask to take the mortgage insurance off? Is there any way to take it off?

If I could take the CMHC payment off, I would like to contribute the savings to a term life insurance policy.
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Old 02-11-2018, 08:56 AM   #8
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Bump!

I had a general question about Mortgage insurance but didnt want to start up a new thread. When I got a mortgage, I only did so with 5% down and therefore had to get CMHC insurance. Now, when my mortgage is up for renewal, could I ask to take the mortgage insurance off? Is there any way to take it off?

If I could take the CMHC payment off, I would like to contribute the savings to a term life insurance policy.
Hi Izzle,

Mortgage default insurance is not something you can have removed. The insurance is added (capitalized) onto your mortgage at the beginning and is a one time added premium when buying with less than 20% down payment.

Note that at renewal there IS NOT an additional CMHC premium added.

It is also good to note that since your mortgage was originally insured, you will be able to get access to some of lowest rates. Renewing your mortgage does not typically cost anything even if you are switching lenders.

If you would like us to assist and advise of renewal options, please reach out and we would be happy to assist.

Tim
tim@cgymortgage.com
403-648-1541
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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

Click here to View current Mortgage Rates

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