Blog by Scott & Marcella Williams

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CMHC RAISES RATES AGAIN




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CMHC Has increased their rates again. 
It’s the second time in about a year that CMHC has raised its fees on homeowners.  CMHC’s move targets only those putting down less than 10%, which equates to $450 per $100,000 of mortgage.
Some quick notes for homebuyers:
  • If your loan-to-value is over 90% and your lender submits your complete application to CMHC before June 1, 2015, you’ll pay the old (cheaper) CMHC fees. It doesn’t matter when your mortgage closes.
  • Submitting a pre-approval as opposed to a complete application will not hold the old insurance premiums.
  • If you borrow your down payment, the fee is another 5 basis points (0.05%) higher, or 3.85% of the mortgage amount.
  • Effective June 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage loan insurance premiums will be:
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%

Information courtesy of:

Regan Switucka
Mortgage Development Manager