On March 17th, all three mortgage insurers (CMHC, Genworth, Canada Guaranty) are increasing their premiums. This is directly linked to the January default insurer changes instituted by OSFI. In order to get the current premiums for either CMHC, Genworth or Canada Guaranty, your deal will need to be submitted by 11:59 pm Eastern on March 16th.
The mortgage insurers come in to play when you have a down payment of less than 20% or a specialty type of product. The premiums that are charged are based on LTV (loan to value). If you are putting 5% down with a traditional down payment (own resources), you are currently paying a premium of 3.60% After March 16th, the premium will increase to 4.00%. If you are putting 10% down with a traditional down payment you would pay a premium of 2.40% currently and after March 16th, the premium will increase to 3.10%.
Don't panic! For a $350,000 purchase with a 5 to 9.99% down payment, based on a 25 year AM, your monthly payment would increase by about $6.50.
CALL ME IF YOU WANT MORE EXPLANATION. 306.222.7900
Links to the individual press releases: