Less than a month away now until the Canada Mortgage and Housing Corporation (CMHC) increasing mortgage insurance premiums to 15%. May 1, 2014 marks the day homeowners will witness the increase.
What does this mean for you?
If your application is submitted to the Mortgage Insurer prior to May 1, 2014, the current (lower) premium will apply regardless of your closing date. The increased mortgage insurance premiums will only be effective, on those owner-occupied 1-4 unit properties, for new mortgage loan insurance requests submitted on or after May 1st.
This increase is not to be expected to have a major effect on the housing market.
CMHC Mortgage Insurance Loan is calculated by a percentage of the loan based on the loan-to-value ratio. This premium can be paid as a single lump sum, however it is more common to be a part of your regular payments as it is added to the mortgage principal and amortized over the life of your mortgage.
If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at firstname.lastname@example.org.