CMHC announcement - Mortgage Insurance Premiums going up on May 1, 2014

 

Not a mystery anymore, CMHC news is out . Mortgage InsurancePremiums will be going up by about 15% in average starting May 1, 2014. This does not apply to mortgages currently insured by CMHC. For the ones planning on buying and need to pa...y the premium they should buy now and close before May 1st, 2014 . Also for the ones planning on selling this year, now is the best time before the new premiums will be applied .

Steven Mennill, CMHC's vice-president of insurance operations said : "This is not designed to affect housing market activity," .

My guess though is, it will, because it will affect a lot first time buyers willing to buy a big house with minimum downpayment.

The government-owned agency said the new rates are in response to its move to increase capital ratios, a measure of financial security .

For a comparison of new and old rates please see link below.
http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm?WT.cg_n=TWT_MLI

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Lavinia Serbanescu

Lavinia Serbanescu

Sales Representative
CENTURY 21 Heritage Group Ltd., Brokerage*
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