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CMHC increases premiums

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CMHC announced this morning that they will be increasing their premiums across the board. See their press release here

Here's a scenario:
  • On a $300k purchase with 5% down, you will currently pay $10,260 in CMHC premiums and have a monthly payment of roughly $1365
  • After March 17, on the same purchase, you will be paying $11,400 for CMHC premiums with a monthly payment of roughly $1371
  • That's a premium increase of $1140 and a monthly payment increase of roughly $6 a month
  • For this mortgage to fit CMHC's recommended 32% max Gross Debt Ratio the applicants on title would need a combined gross annual income of $75-80k, depending on the property taxes and heating costs
This fee increase is in direct response to the last set of changes that were implemented by the Government on January 1st essentially making it more difficult for lenders to provide mortgages in Canada. This increase was expected during 2017and there is speculation that there will be yet another increase in the near future.

Please feel free to contact me with any questions or concerns.

www.christinebuemann.com
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Location: 1338 Central St E, Prince George, BC V2M 3C1, Canada

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