INSURANCE PREMIUM INCREASES MAY 1st – FOR HIGH RATIO MORTGAGES!!!!
Please note that with the premium increase by CMHC and Genworth – lenders are advising us that the turn around time to get deals approved is quite tight right now. If you want to get your deals approved in time please have them to us by Tuesday at the latest.
Thanks and if you have any questions or if we can help your clients please let us know!
CMHC announced it would hike premiums for default insurance by an average of 15 per cent effective May 1. The increase would hit buyers who have a downpayment of less than 20 per cent.
The highest premiums are paid by those who put down just five per cent of the home’s purchase price. At that level, the mortgage insurance premium rises from 2.75 per cent to 3.15 per cent.
CMHC estimates that for the average buyer needing insured financing, the new rates will add about $5 a month.