CMHC higher premiums start today
CMHC’s new higher insurance premiums take effect today. That means it will cost you a little more if you are buying a home with less than 20% down. The increases are minor and aren’t expected to have any effect on the housing market. (by the way, CMHC has adjusted these premiums before)
What’s puzzling is why they felt the need to do this. CMHC produces a healthy profit. As a crown corporation, those profits go directly into the government coffers. CMHC arrears are at 0.33%. That’s close to an all time low.
I guess it’s a good way to increase profits but they are making $2billion per year! Here’s the old and new premiums.
| Loan-to-Value Ratio | Standard Premium (Current) | Standard Premium (Effective May 1st, 2014) |
|---|---|---|
| Up to and including 65% | 0.50% | 0.60% |
| Up to and including 75% | 0.65% | 0.75% |
| Up to and including 80% | 1.00% | 1.25% |
| Up to and including 85% | 1.75% | 1.80% |
| Up to and including 90% | 2.00% | 2.40% |
| Up to and including 95% | 2.75% | 3.15% |
| 90.01% to 95% – Non-Traditional Down Payment | 2.90% | 3.35% |
Your best interest is my only interest. I welcome your questions and comments. Like this article? Share it with a friend.
Steve Garganis 416 224 0114 steve@mortgagenow.ca
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As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.
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Always enjoy your posts. They are relevant and have an actual point unlike other useless mortgage supposed info sites.