Increase in the Mortgage Default Premiums is Here!
Friday Jan 26th, 2018Share
As I already wrote on January 17, 2017 the CMHC has announced that the increased premiums will come into the effect on March 17, 2017. The new premiums will result in an increase of approximately $5 to the monthly mortgage payment of the average CMHC-insured homebuyer ($250,000 mortgage loan with less than 10% down payment).
All applications that are submitted to CMHC prior to the 17th will have the old % applied. Anything on or after 17th will have the new increased premiums. If you're looking to buy, this is a good reason to speed up your purchase. You don’t have to close by March 17, but your mortgage application has to be completed.
5% down payment Premium increased to 4.00% from 3.15%
10% down payment Premium increased to 3.10% from 2.40%
15% down payment Premium increased to 2.40% from 1.80%
Olesa Islamova, Real Estate Sales Representative | Realtor®
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