“These changes are not designed to change the housing activity but reduce Canadian taxpayers’ exposure to a changing housing market and contribute to the long term stability of the financial system”. – Steven Mennill
CMHC’s Vice President
Starting May 1st CMHC will be implementing higher Mortgage Insurance premiums for homebuyers who make a down payment of less than 20 percent.
The rise of premiums is not expected to have a huge impact on the housing market, but will however affect housing affordability.
The premiums can still be added to the balance of your Mortgage and does not have to be paid as closing costs. These changes will not however affect current homeowners who are already Insured by CMHC.
If a borrower has an accepted offer prior to May 1st they will still be able to qualify for the lower premiums even if their possession date is thereafter. We encourage homebuyers to talk to us today about how to take advantage of the lower premium rates.