The BUZZ

Insurance Rates Going Up

tight_money_insuranceMortgage 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%