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Effective June 1, 2015, Genworth Canada will increase its mortgage insurance premium rates for homebuyers who have less 10% of their down payments.

Those buyers’ rates will rise by approximately 15%, says Stuart Levings, president and CEO of Genworth Canada. “[That’s] reflective of higher capital requirements, and supports the long-term health of Canada’s housing finance system.”

Read: Most Canadians choosing fixed-rate mortgages: CIBC

Let’s say a first-time homebuyer is taking out a 95% loan-to-value mortgage of $300,000, explains Levings. As a result, his monthly mortgage payment will go up by about $6, based on a 2.79% interest rate and 25-year amortization period.

The new premium rates for standard owner-occupied purchase applications submitted on or after June 1, 2015 are as follows.

Loan-to-Value Ratio Standard Premium 
(Current) Standard Premium

(Effective June 1st, 2015)

Up to and including 65% 0.60% 0.60%
Up to and including 75% 0.75% 0.75%
Up to and including 80% 1.25% 1.25%
Up to and including 85% 1.80% 1.80%
Up to and including 90% 2.40% 2.40%
Up to and including 95% 3.15% 3.60%
90.01% to 95% Non-

Traditional Down Payment

3.35% 3.85%

Read:

More Canadian banks cut lending rates

Make the most of a mortgage

Originally published on Advisor.ca

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