New homebuyers that need mortgage insurance before they can purchase that dream home will fork over more starting this spring.
The Canada Mortgage and Housing Corp. (CMHC) said Friday it’s raising mortgage loan insurance premiums by an average of about 15 per cent starting May 1. The Crown Corporation said the impact is an extra $5 per month for the average homebuyer. (That's based on a mortgage of about $248,000, which if you're buying a home in Vancouver or Toronto, is a dream in itself.)
“This is not expected to have a material impact on the housing market,” CMHC stated.
The changes will be for new mortgage insurance policies, with no impact on existing ones. It applies to owner occupied, self-employed and rental properties with one-to-four units.
CMHC says the change comes following an annual review of its insurance products and capital requirements.
Steven Mennill, CMHC’s vice-president, insurance operations, said the changes are being made to match the corporation’s higher capitalRead More »from CMHC hikes rates for mortgage insurance