CMHC To Increase Premiums As Of May 1, 2014

March 3rd, 2014

Getting a mortgage is about to get a bit tougher…and expensive!  The CMHC announced that they will be increasing their premiums on May 1, 2014.  This will make qualifying for a mortgage tougher and obviously make the mortgage more expensive.

Mortgage default insurance is mandatory for clients putting less than 20% down through  “A” lenders (financial institutions offering  low rates such as banks).  Here is a quick look at CMHC premiums today and at May 1.

Loan-to-Value Ratio Standard Premium (Current) Standard Premium (Effective May 1st, 2014)
Up to and including 65% .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%