CMHC has just announced that they will be raising their mortgage premiums effective May 1st. The increase was not from the Department of Finance, this was a business decision from CMHC.
This increase will see the 5% down payment premium increase from 2.75% it is now to 3.15%. This is not a huge increase and is not even as high as it was 15 years ago. In the past the 5% premium was 3.75% when they dropped it down to 3.25% and finally down to the 2.75% we see today. The average mortgage will see about a $5 per month increase in their mortgage payment should they choose to include the mortgage premium in the mortgage.
CMHC’s press release can be found here http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm
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Scott Bourke, AMP
Dominion Lending Centres
Regional Mortgage Group
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