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True North Mortgage Insurance Premiums

March 8, 2017

CMHC announced that starting March 17th, they will be increasing premiums on insured mortgage loans. If you are considering buying a home soon and looking to save some money, having your application submitted before March 17th, 2017 could be a wise decision.  

Impact on Premium Increase

Loan-to-Value

New Premium

Old Premium

Up to and including 65%

0.60% 0.60%

Up to and including 75%

1.70%

0.75%

Up to and including 80%

2.40%

1.25%

Up to and including 85%

2.80%

1.80%

Up to and including 90%

3.10%

2.40%

Up to and including 95%

4.00%

3.60%

90.01% to 95% —
Non-Traditional Down Payment**

4.50%

3.85%

Example on a $400,000 Purchase Price with a 15% down payment:

  Old Premium New Premium

Purchase Price

$400,000 $400,000

Down Payment

$60,000 $60,000

Total

$340,000 $340,000

Premium

$6,120 @ 1.80% $9,520 @ 2.80%

Final Mortgage

$346,120 $349,520

The difference in the Premium would cost you an extra $3,400 initially but since this amount is also added to your mortgage and then amortized with interest it will actually cost you a bit more over the life of your mortgage.