Our Blog

Mortgage Insurance, How the Increases will Affect the Mortgages after May 1, 2014
 April 21 2015     Posted by Tracy Bennett


CMHC and Genworthwill increase their mortgage loan insurance premiums for homeowners and 1-4 unit rental properties effective May 1, 2014.


The increase applies to mortgage loan insurance for owner occupied, self-employed and rental purchases of 1-4 units.

Loan-to-Value Ratio Premium (Current) New 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%


How this affects your purchase:

95% Loan-to-Value
Loan Amount $150,000 $250,000 $350,000 $450,000
Current Premium $4,125 $6,875 $9,625 $12,375
New Premium $4,725 $7,875 $11,025 $14,175
Additional Premium $600 $1,000 $1,400 $1,800
Increase to Monthly Mortgage Payment $3.00 $4.98 $6.99 $8.98

 

(Based on a 5 year term @ 3.49% 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 and are paid at lawyers. For Ontario it is 8%.

For self-employed clients who can verify income, the increases are the same as above. For those that cannot validate income, the premiums have increased to 5.45% at 90% loan to value which is an increase from 4.75%. Also, rental properties to 80% will increase from 2.5% to 2.90%. For specific loan amounts and calculations of the costs, please contact me for a quote. This may motivate many to close their purchases in April!


Bookmark and Share

SEO by:Local SEO Search Inc. Top SEO Agency in Toronto