Monday, June 1, 2015

Effective Today CMHC Increases Premiums


CMHC Mortgage Default Insurance Rate Increase

Effective today, June 1, 2015 CMHC insurance increase the cost of mortgage default insurance.  The increase is approximately 15% going from 3.15% to 3.60%.  This increase only effects people planning to purchase a house with less than 10% for a down payment. 

Let’s just say you were planning to purchase a house for $400,000, with 5% down, your mortgage insurance would have been $11,970 prior to June 1, 2015.  Today with the increase the same $400,000 purchase with 5% down will now cost you $13,680, an increase of $1,710.  This represents an approximate payment increase of $7.82 per month. 



What you need to know about Mortgage Default insurance

Mortgage default insurance is added on top of your mortgage.  It is a onetime expense and remains a part of the mortgage for its entirety.  Which means should you plan to port or transfer your mortgage it stays with the mortgage so you don’t have to pay for the insurance on the same mortgage.  Without mortgage default insurance there would be little chance of buying a house now a days without at least 20% down. 

For more information please don’t hesitate to contact me.  Further default insurance premiums are available here…. www.shawnmooney.com/mortgagedefaultinsurance.htm.

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