Effective today, June 1, 2015, Mortgage Insurance Premiums in Canada are higher. This is led by CMHC, the Government of Canada owned mortgage insurer, and followed by Genworth Canada and Canada Guaranty, the private sector competitors.
Who Does this Affect?
This will primarily affect borrowers who purchase a home with less than 10% down - or in lender speak, borrow > 90% LTV (Loan to Value) or who use a non-traditional source of down payment (Flex Down). Unfortunately this affects first-time buyers the most, but the change is across the board and will not change from lender to lender (or mortgage broker to broker).
What are the Changes?
The rate changes go from 3.15% to 3.60% on loan-to-value ratios between 90.01% and 95%, and from 3.35% to 3.85% for "Flex Down" programs. The insurance premium "top-up" amount also goes from 4.9% to 5.65% on insured purchases where the original purchase was previously insured.