Canada Mortgage and Housing Corp (CMHC) is Raising Insurance Premiums

Most mortgage providers require mortgage loan insurance if your down payment is less than 20%. The CMHC is increasing the insurance premium by 15% starting June 1, 2015 for those buying property with less than a 10% down payment.  Everyone else and already existing mortgages remain unaffected.

From the CMHC website:

As a result of its annual review of its insurance products and capital requirements, CMHC is increasing its homeowner mortgage loan insurance premiums for homebuyers with less than a 10% down payment. Effective June 1, 2015, the mortgage loan insurance premiums for homebuyers with less than a 10% down payment will increase by approximately 15%.

For the average Canadian homebuyer who has less than a 10% down payment, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on housing markets.

Premiums for homebuyers with a down payment of 10% or more and for CMHC’s portfolio insurance and multi-unit insurance products remain unchanged. The changes do not apply to mortgages currently insured by CMHC.