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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