CMHC to Increase Mortgage Insurance Premiums
Just Announced: Effective May 1, 2014 CMHC will increase its mortgage loan insurance premiums for owner occupied, self-employed and 1-4 unit rental properties including low-ratio refinance premiums.
“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations. “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”
This will not affect mortgage currently insured by CMHC.
CMHC says the effect of the increase amounts to about $5 per month to their mortgage payment.
You can get a copy of the press release here: http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm?WT.cg_n=TWT_MLI
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Matthew S Hines is a Toronto Mortgage Broker with Dominion Lending Centres Edge Financial. (#10710). Matthew is a First Time Home Buyer Specialist and has been helping aspiring home owners “Achieve The Dream” of home ownership since 2005. Matthew can be contaced at email@example.com