Today, CMHC’s mortgage loan insurance premium increases take effect. These will most significantly affect buyers who purchase homes with a down payment of less than 20%, given those buyers must get mortgage default insurance, but will also impact some people with low-ratio mortgages.
CMHC announced its plan to hike premiums in January, noting that, for the average CMHC-insured homebuyer, the move would result in an increase of approximately $5 to their monthly mortgage payment.
To help clients understand the change, consider sharing Ratehub.ca’s infographic, which highlights how the hike could impact homebuyers across Canada–it looks at each province and at select cities.
Ratehub points out, “Canadians with a mortgage, or those who applied for one before March 17, won’t be affected by the premium increase.”