CMHC is increasing its homeowner mortgage loan insurance premiums as a result of our regular review of insurance products and to reflect the new OSFI Capital Requirements for Federally Regulated Mortgage Insurers that came into effect on January 1, 2017.
The new premiums are effective March 17, 2017 and will result in an increase of approximately $5 to the monthly mortgage payment of the average CMHC-insured homebuyer. The premium schedule is as follows:
Standard Premiums
Loan-to-Value Ratio
Total Loan Amount
Increase to Loan Amount
Up to and including 65%
0.60%
0.60%
Up to and including 75%
1.70%
5.90%
Up to and including 80%
2.40%
6.05%
Up to and including 85%
2.80%
6.20%
Up to and including 90%
3.10%
6.25%
Up to and including 95%
– Traditional Sources of Equity
– Non-traditional Sources of Equity
4.00%
4.50%
6.30%
6.60%
Note: for purchase/new construction loan applications, the premium rate is applied to the Total Loan Amount. For portability loan applications, the premium is the lesser of: the rate applied to the Increase to Loan Amount; or the premium rate applied to the Total Loan Amount.
CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or after March 17, 2017.
· CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.
· As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
· The changes do not impact mortgages currently insured by CMHC.
For more information on the new premiums, visit cmhc.ca or contact your CMHC National Key Account Manager or Regional Manager, Client Relations.
