Effective May 01, 2014, CMHC has announced an increase to their mortgage insurance premiums across the board. The premium increase ranges from 0.05% to 0.40% depending on the loan-to-value ratio. As a reminder, mortgage loan insurance is a requirement by lenders when your down payment is less than 20% of the purchase price. CMHC advises that in 2013 the average insured mortgage at 95% loan-to-value was $248,000. With the new CMHC guidelines, this will translate to less than a $5.00 increase in your monthly mortgage payment for a $250,000 mortgage. Here are some other examples:
|Increase to Monthly Mortgage Payment||$3.87||$5.80||$7.73|
* The above scenarios are based on a 5 year term @ 3.19% and a 25 year amortization.
If you are purchasing a home soon and would like to find out how the new insured guidelines will affect you, please give one of our professional Kelowna mortgage brokers at The Mortgage Centre – BC Direct Mortgages a call at 250-762-2070 at your convenience to discuss further. We look forward hearing from you soon.