Mortgage Insurance has increased
CMHC, which stands for "Canada Mortgage and Housing Corporation" has increased its mortgage insurance premiums effective March 17, 2017.
What is mortgage insurance?
Mortgage insurance is required by lenders when you make a down payment of less than 20%. It protects lenders in case you default on your mortgage. The premium calculations are located on the home screen just above the slider. The amount is based on your home price and other criteria.
How much did it increase?
Well, according to CMHC it is an increase of approximately $5 to your monthly mortgage payment.
We did a quick comparison to see the effect of the increase on a bi-weekly payment of a $500,000 home with 5% down payment and a rate of 2.59% fixed.
Here is the result:
- Bi-weekly payment before the increase
$1,027.64 - Bi-weekly payment after March 17, 2017
$1,031.61 - Bi-weekly increase of just
$3,97
Hope you enjoy this new update.
CMA PRO
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