Canada Mortgage Insurance(CMHC) - New 2014 Rates
Blog by Diane Cardoso | January 15th, 2014
Starting January 2, 2014, Canada Mortgage and Housing Insurance Corp (CMHC) will be charging 3.25% premium insurance cost for all new mortgages from Buyers with a 10% downpayment. The CMHC insurance premium is a vehicle which allows all Buyers with under 20% downpayment to secure a mortgage. CMHC insures against default on mortgages offered by Lenders. CMHC is backed by the Federal Government and ultimately by taxpayers in the event of default. During the past 5 years, Minister Jim Flaherty has tightened mortgage rules five times and has also transfered oversight of CMHC to the Federal Office of the Superintendent of Financial Institutions. The 3.25% fee will be rolled into the face value of the mortgage and paid back over the life of the mortgage. Buyer's are not required to provide this cost in advance of their home purchase.