CMHC announces changes to insurance premiums



CMHC just announced price increases on its premiums. On 5% down mortgages the premium will be increased to 3.15% instead of 2.75%, effective May 1st.What does this mean to you? 

Example: Home purchase at $400,000 with 5% down

Old CMHC premium: $10,450
New CMHC premium: $11,970

The difference? $1,520. In my opinion, this increase is not significant enough to have any real effect on the housing market. As with most goods and services, prices eventually go up! 

Read the full announcement here: http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-02-28-1100.cfm

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