| OTTAWA, January 17, 2017 — CMHC is increasing its homeowner mortgage loan insurance premiums effective March 17, 2017.
CMHC’s standard mortgage loan insurance premiums will be changing as follows:
| Loan-to-Value Ratio |
Standard Premium (Current) |
Standard Premium (Effective March 17, 2017) |
| Up to and including 65% |
0.60% |
0.60% |
| Up to and including 75% |
0.75% |
1.70% |
| Up to and including 80% |
1.25% |
2.40% |
| Up to and including 85% |
1.80% |
2.80% |
| Up to and including 90% |
2.40% |
3.10% |
| Up to and including 95% |
3.60% |
4.00% |
| 90.01% to 95% – Non-Traditional Down Payment |
3.85% |
4.50% |
Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.
- CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or after March 17, 2017. The current mortgage loan insurance premiums will apply for applications submitted to CMHC prior to this date, regardless of the closing date. As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
- The changes do not impact mortgages currently insured by CMHC.
Source: https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2017/2017-01-17-0830.cfm |
