It’s time to get Approved – mortgage insurance premiums increasing May 1st!

CMHC is increasing the insurance rates for mortgage loans by 15 per cent on average.

The new premiums will go into effect May 1 and apply to all new mortgages, existing mortgages are not affected.

Buyers with less than 20% down payment will be paying more in insurance premiums. Self-Employed clients with no income verification will pay even higher premiums.

The overall cost of buying a home with a small down payment could cost thousands, but CMHC estimates on an average purchase the cost will work out to $5 per month to an average mortgage payments.

Interesting Points:

  • Existing insured mortgages are not affected as long as no new money is added.
  • Changes apply to owner occupied, self-employed and 1-to-4 unit rental property applications
  • Self-Employed applicants who cannot verify income will be hit with the largest increase
  • All the mortgages approved before May 1st will still get current rates.
  • Genworth has announced that they will follow CMHC with the increase, Canada Guarantee has not made an announcement yet


Loan-to-Value Ratio Standard Premium
Standard Premium
(Effective May 1, 2014)
Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%


Past CMHC insurance premium changes:

  • In 2006 CMHC added the homeowner premium surcharge for extended amortizations beyond 25 years.
  • In 2006 CMHC eliminated the application fee for all high-ratio homeowner applications.
  • In 2005 CMHC reduced its homeowner premiums in the 90.01% to 95% loan-to-value range by 15% and its multi-unit affordable housing premiums by 15%.
  • In 2003 CMHC reduced its homeowner premiums by 15% on all loan-to-value ranges.
  • In 2002 CMHC increased its mortgage loan insurance premiums for new multi-unit residential properties (5 units or more).

(Source: CMHC)

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