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!