The newly increased CMHC insurance premiums are quite reasonable. If you look at the graph below, they illustrate just how much the increase will affect the average consumer. Keep in mind since the economic meltdown south of the border in 2008, our default ratios here in Canada have increased slightly. This means more risk for insurers like CMHC and Genworth Financial.
Anyone who secures financing on a real deal before May 1st, 2014 (regardless of the closing date) will have the old CMHC premium rates. If you secure financing May 1st or later then new mortgage insurance rates apply. If you have questions, please contact our office!
Corinna Smith-Gatcke, Mortgage Agent M08001535
www.haveyourmoney.com T 613-498-9719 firstname.lastname@example.org