{"id":983,"date":"2014-02-28T16:17:16","date_gmt":"2014-03-01T00:17:16","guid":{"rendered":"http:\/\/www.ingridjarisz.com\/blog\/?p=983"},"modified":"2014-02-28T16:18:23","modified_gmt":"2014-03-01T00:18:23","slug":"cmhc-to-increase-mortgage-insurance-premiums","status":"publish","type":"post","link":"https:\/\/www.ingridjarisz.com\/blog\/cmhc-to-increase-mortgage-insurance-premiums\/","title":{"rendered":"CMHC to Increase Mortgage Insurance Premiums"},"content":{"rendered":"

\"CMHC<\/a><\/h1>\n

OTTAWA, February 28, 2014 \u2014<\/strong> Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 \u2013 4 unit rental properties effective May 1, 2014.<\/p>\n

The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply to mortgages currently insured by CMHC.<\/p>\n

CMHC\u2019s capital management framework is consistent with international practices and Canadian guidelines for mortgage insurers. Increased capital targets are consistent with Canadian and international industry trends and makes the financial system more stable and resilient.<\/p>\n

\u201cThe higher premiums reflect CMHC\u2019s higher capital targets\u201d said Steven Mennill, CMHC\u2019s Vice-President, Insurance Operations. \u201cCMHC\u2019s capital holdings reduce Canadian taxpayers\u2019 exposure to the housing market and contribute to the long term stability of the financial system.\u201d<\/p>\n

For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5\u00a0to their monthly mortgage payment. This is not expected to have a material impact on the housing market.<\/p>\n

Effective May 1st<\/span><\/sup>, CMHC Purchase (owner occupied 1 \u2013 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Loan-to-Value Ratio<\/th>\nStandard Premium (Current)<\/th>\nStandard Premium (Effective May 1st<\/sup>, 2014)<\/th>\n<\/tr>\n<\/thead>\n
Up to and including 65%<\/td>\n0.50%<\/td>\n0.60%<\/td>\n<\/tr>\n
Up to and including 75%<\/td>\n0.65%<\/td>\n0.75%<\/td>\n<\/tr>\n
Up to and including 80%<\/td>\n1.00%<\/td>\n1.25%<\/td>\n<\/tr>\n
Up to and including 85%<\/td>\n1.75%<\/td>\n1.80%<\/td>\n<\/tr>\n
Up to and including 90%<\/td>\n2.00%<\/td>\n2.40%<\/td>\n<\/tr>\n
Up to and including 95%<\/td>\n2.75%<\/td>\n3.15%<\/td>\n<\/tr>\n
90.01% to 95% \u2013 Non-Traditional Down\u00a0Payment<\/td>\n2.90%<\/td>\n3.35%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

CMHC reviews its premiums on an annual basis and, going forward, plans to announce decisions on premiums in the first quarter of each year. The homeowner premium increase follows changes CMHC made to its portfolio insurance product earlier this year.<\/p>\n

As Canada\u2019s national housing agency, CMHC draws on more than 65\u00a0years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.<\/p>\n

For additional highlights please see attached backgrounder and key fact<\/a> sheet.<\/p>\n","protected":false},"excerpt":{"rendered":"

OTTAWA, February 28, 2014 \u2014 Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 \u2013 4 unit rental properties effective May 1, 2014. The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including  Continue Reading »<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,33,40,4],"tags":[59,36,45,15,35,69,13],"_links":{"self":[{"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/posts\/983"}],"collection":[{"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/comments?post=983"}],"version-history":[{"count":8,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/posts\/983\/revisions"}],"predecessor-version":[{"id":990,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/posts\/983\/revisions\/990"}],"wp:attachment":[{"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/media?parent=983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/categories?post=983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ingridjarisz.com\/blog\/wp-json\/wp\/v2\/tags?post=983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}