CMHC IS INCREASING MORTGAGE INSURANCE RATES
CANADA MORTGAGE AND HOUSINBG CORPORATION IS INCREASING ITS MORTGAGE INSURANCE DEFAULT PREMIUM!!!
CMHC is increasing
its mortgage insurance premiums for homeowners and 1-4 unit rental properties
effective May 1, 2014.
The change will only apply to mortgages underwritten after May 1, 2014 and it will apply to all homeowner business from that day forward as a result of increasing capital targets. The increase will only affect new policies, not mortgages already in existence.
Prior to the announcement, the premiums ranged between 0.5 per cent and 2.75 per cent. Under the new rules, they will range from 0.6 per cent to 3.15 per cent.
Premiums will rise about 15 per cent, according to CMHC, though it isn't expected to have a major effect on the housing market.
CLIENTS TAKING POSSESSION AFTER MAY 1ST
For clients that do not have their deal firm yet ( either have a possession date past 120 days and/or may 1st , or need to prove the difference in down payment closer to possession, income taxes etc this change may affect your file.
If you have any questions, please do not hesitate to contact me