Mortgage before May – Rising insurance premiums bump up costs

April 25, 2014 by Oliver Heimann  / Investment Advisor, HollisWealth and Mortgage Broker with Invis If you’re in the market for a mortgage, and have less than 20% down payment, then you might want to get that mortgage before May. For the first time in more than a decade, Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes: an average 15%. Private insurer Genworth followed suit with a matching increase. Canadian homebuyers are required to have mortgage insurance if they have less than 20% equity in their homes. How does it hit your wallet? A first-time homebuyer with a $248,000 mortgage and a 5% down payment will pay an extra $5 per month in insurance premiums. If you are self-employed, a larger fee may apply. I can calculate exactly how much the increase will mean to you. The change will come into effect on May 1st. Homebuyers will be able to access the current lower rates if they have bought a home and are approved before the May 1 deadline, even if they have a later closing date. Give me a call or email me any questions you may have or if you need help getting a mortgage financed in the short term. * Invis Canada is an independent company. Scotiabank companies have no liability for activities outside HollisWealth