CMHC will increase its mortgage loan insurance premiums for homeowners and 1 – 4 unit rental properties effective May 1, 2014.
The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1– 4 unit rental properties, including low-ratio refinance premiums. This increase does not apply to mortgages currently insured by CMHC.
For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.
Effective May 1st, CMHC Purchase (owner occupied 1 – 4 units) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.
Standard Premium (Current)
Standard Premium (Effective May 1, 2014)
Up to and including 65%
Up to and including 75%
Up to and including 80%
Up to and including 85%
Up to and including 90%
Up to and including 95%
90.01% to 95% – Non-Traditional Down Payment
For more information on CMHC’s mortgage insurance rate increase, go here