The Canada Mortgage and Housing Corporation (“CMHC”) has announced that it will increase the premiums to be paid by homeowners when obtaining a mortgage with less than 20% equity in the property. The premiums will increase by an average of 15%.
The increase in premiums will result in greater costs to persons buying a home with a down payment of less than 20% of the home’s value and for borrwers taking loans for greater than 80% of the home’s value.
For more information on CMHC insured mortgages, please see our previous post: What is the Effect of a CMHC or GE Insured (“High Ratio”) Mortgage?
See article from CBC News: CMHC Hikes Mortgage Insurance Premiums
For more information, please feel free to contact our office.