Insurance Premiums Set To Rise

Insurance Premiums Set To Rise

March 8, 2017

CMHC has announced that starting March 17, 2017, they will be increasing premiums on insured mortgage loans.

If you're considering buying a home in the near future and looking to save some money, submitting your application before that date may 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 PremiumNew 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 default insurance 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 than that over the life of your mortgage.

Have questions? Give us a call, stop by one of our store locations, or get a call back when it's convenient for you — we're always here to give you great mortgage advice.