Canadian Mortgage Insurers to Increase Premiums as of March 17, 2017

CMHC, Genworth & Canada Guaranty are increasing their homeowner mortgage loan insurance premiums effective March 17, 2017.  For the average homebuyer, the higher premium will result in an increase of approximately $5.00 to their monthly mortgage payment.

Down payment between 5% and 9.99%

Loan Amount           $150,000     $250,000     $350,000     $450,000     $550,000     $850.000

Increase to
Mortgage Payment  
   $2.82             $4.70            $6.59            $8.47           $10.35         $15.98
(Based on a 5 year term @ 2.94% and a 25 year amortization)

*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax - the sales tax cannot be added to the loan amount.

Default mortgage loan insurance enables Canadians to buy a home with a minimum down payment starting at 5%.  Premiums are calculated based on the loan-to-value ratio of the mortgage being insured.  The premium can paid in a single lump sum, but more frequently is added to the mortgage principal and repaid over the life of the mortgage as part of regular mortgage payments.

If you have any questions, concerns or would like more information, please do not hesitate to contact us at 204-954-7620 to speak to a trusted and knowledgeable Manitoba Mortgage Broker.  We are here to help.