CMHC is increasing its homeowner mortgage loan insurance premiums to reflect its increased
capital targets.
As a result of its annual review of its insurance products and capital requirements, CMHC is
increasing its homeowner mortgage loan insurance premiums to reflect its increased capital
target.The change will only apply to mortgages underwritten after May 1, 2014 and it will apply to all homeowner business from that day forward.
CMHC reviews its premiums on an annual basis and, going forward, plans to announce decisions on premiums in the first quarter of each year.
For the average Canadian homebuyer using a CMHC-insured mortgage, the higher premium
will result in an increase of approximately $5 to their monthly mortgage payment. This is not
expected to have a material impact on the housing market.
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