CMHC Announcment: Higher Insurance Premiums by March 17, 2017
Effective March 17th it will be more expensive (again) to get a mortgage in Canada -whether you're putting 5% down, or even more - as premiums have increased across the range of CMHC default insurance products - including loan-to-value ratios as low as 75%.
Estimated increases to monthly payments range from $4.94 per $150,000 loan to as much as $27.98 per month on an $850,000 loan amount. These may seem like small increases but when factored in with other increases recently, higher interest rates, higher utility costs, and things like the carbon tax, it seems as though homeowners are getting nailed with a lot of new costs.
These increases come at a time when mortgage arrears rates, according ot the Canadian Bankers Association, are as low as 0.42% - or about 4 in every 1000 homeowners are behind on a mortgage payment.
I go through some of the details in the video below. If you have any questions or concerns don't hesitate to leave them in the comments or contact a First Foundation Mortgage Broker for more information.