Mortgage Insurance Premiums are on the Rise
Effective March 17, The mortgage default insurers (CMHC, Genworth, Canada Guarantee) are going to be increasing mortgage insurance premiums. This rate change is in conncetion with OSFI’s new captial requirements that started on January 1st requiring mortgage insurers to hold additional capital. This will help the long term stability of the financial system by creating a buffer against potential losses.
If you have a deal in the works, They need to be accepted and then submitted before March 16th in order to take advantage of the lower premiums.
New Insurance Premiums Rate Table
Standard Premium Rate Table
LTV Ratio Current New (3/17,/17)
Up to 65% 0.60% 0.60%
65.01% – 75% 0.75% 2.60%
75.01% – 80% 1.25% 3.15%
80.01% – 85% 1.80% 4.00%
85.01% – 90% 2.40% 4.90%
90.01% – 95% 3.60% 5.65%
Business For Self (ALT.A) Premium Rate Table
LTV Ratio Current New (3/17/17)
Up to 65% 0.90% 1.75%
65.01% – 75% 1.15% 3.00%
75.01% – 80% 1.90% 4.45%
80.01% – 85% 3.35% 6.35%
85.01% – 90% 5.45% 8.05%
Vacation (B) Premium Rate Table
LTV Ratio Current New (3/17/17)
Up to 65% 1.45% 1.45%
65.01% – 75% 1.60% 3.45%
75.01% – 80% 2.00% 4.00%
80.01% – 85% 2.90% 4.90%
85.01%-90% 3.15% 5.75%