Regina Homes & Condos For Sale|Regina Real Estate 


Mortgage insurance premiums are about to go higher.

The Canada Mortgage Housing Corporation is hiking the cost of mortgage insurance for homebuyers March 17 just one more piece of regulatory requirements requiring homeowners to hold more capital to offset risks in the stubbornly hot real estate markets in pockets of the country.

Toronto housing prices have broken with fundamentals and are in bubble territory, banks warned this week.

The increases apply to those who require insurance when they don’t have a 20 per cent down payment. This alone isn’t expected to have an impact on the market but when coupled with other changes it could start to add up. In the past year, higher down payment requirements on a portion of a home worth over $500,000 to 10 per cent, and the decrease in amortization – and now an increase in the cost of mortgage insurance.

Put it all together and there will be some, especially first time homebuyers, having to sit on the sidelines a little longer.

The actual increase in insurance premiums isn’t all that much and is calculated on the loan-to-value of the mortgage being insured. At a minimum, the changes will add about $5.00 to a monthly mortgage of a CMHC insured loan of approximately $245,000.

With this rate increase coming the same week higher mortgage insurance premiums take effect for Canadian homebuyers, it will add to a prospective buyer’s total monthly carrying costs and making the mortgage amount a buyer can qualify for incrementally less.


No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Your email will not be published
Your Email: *
Comment: *
Please type the text as it appears above:
Aaron Habicht
Sutton Group - Results Realty
3904 B Gordon Road
Regina, SK
S4S 6Y3 CA
The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.