Canada Mortgage and Housing Corporation has announced an increase in their rates for mortgage insurance, starting in mid-March. CMHC has announced that the premium, which is calculated based on the mortgage’s loan-to-value ratio will add approximately $5.00 a month for borrowers on average. For borrowers residing in cities such as Toronto, Vancouver, and Montreal the increase will be proportionally higher because of the larger purchase prices in those cities.
The Senior Vice President of CMHC has stated that, “overall the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.” The new rates will only apply to mortgage applications received on or after March 17, 2017. It will not affect purchasers who have an existing mortgage or have submitted an application before March 17, 2017.
Obviously, this is “tremendous news” to share with your clients and customers.
