CMHC changes effective May 1, 2014

On February 28th, CMHC announced they will increasing the loan premiums for homeowners and 1-4 unit rental properties.

Here is a chart indicating the loan to value ratio (current and effective May 1, 2014):

Loan-to-Value Ratio

 

Standard Premium (Current)

 

Standard Premium (Effective May 1st, 2014)

 

Up to and including 65%

 

0.50%

 

0.60%

 

Up to and including 75%

 

0.65%

 

0.75%

 

Up to and including 80%

 

1.00%

 

1.25%

 

Up to and including 85%

 

1.75%

 

1.80%

 

Up to and including 90%

 

2.00%

 

2.40%

 

Up to and including 95%

 

2.75%

 

3.15%

 

90.01% to 95% – Non-Traditional Down Payment

 

2.90%

 

3.35%

 

For the average Canadian homebuyer requiring CMHC insured financing, 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 the housing market.

If you would rather that $5/month in your pocket, call me today and we can get you started on the journey to find your next home!