One major mortgage insurer wasted no time announcing its own premium changes, following CMHC’s major statement Friday.
"We believe this new pricing is prudent and more reflective of increased regulatory capital requirements," Brian Hurley, chairman and CEO of Genworth Canada said in an official release. "These pricing actions are supportive of the long-term safety and stability of the Canadian housing market."
The rate hike is set to take effect May 1, 2014; the same day as CMHC's.
This recent announcement is unsurprising, given the fact that Genworth – along with its counterpart, Canada Guaranty – has been calling for CMHC to hike its rates as recently as December of last year.
Genworth’s new premiums exactly align with CMHC’s and the reasoning for the hikes echo the Crown Corporation's as well, who stated “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”
With two of the three major mortgage insurers raising their rates, perhaps it is only a matter of time before Canada Guaranty follows suit.
Kevin Benta is a sales representative with Century 21 Percy Fulton and serves Toronto, Pickering, Ajax, Whitby and Oshawa.