CMHC (Canada Mortgage and Housing Corporation) helps protect lenders from mortgage default. CMHC insurance is required when the down payment avalable toward the purchase of a home is less than 20% of the purchase price.
Effective May 1, 2014, CMHC is increasing it's homeowner mortgage loan insurance premiums.
For the average Canadian homebuyer, this change will result in approximately an additional $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.
For more information visit www.cmhc.ca