CMHC to Increase Premiums

CMHC announced January 17th that it is increasing its homeowner mortgage loan insurance premiums effective March 17, 2017. Premiums will be changing as follows (courtesy of CMHC):

“We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home,” said Steven Mennill, Senior Vice-President, Insurance. “Overall, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.” CMHC regularly reviews its premiums and sets them at a level to cover related claims and expenses while also reflecting the regulatory capital requirements.

The March 17th date is the cutoff for a mortgage application to be sent to CMHC. This could mean that the closing date of the transaction could be months later, but the old premiums could still apply. We encourage you to contact your lender for more information.

Sources:

CMHC news release

Geoff Parkin of Select Mortgage


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