Mortgage insurance provided by CMHC, Genworth and Canada Guaranty will increase for homebuyers with less than a 10% down payment. The mortgage insurance fees rise June 1, 2015, by approximately 15%.
For the average Canadian homebuyer who has less than a 10% down payment, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. There is no change in fee to buyers with over 10% down payment.
The mortgage insurance fee is rolled into the mortgage so it increases the mortgage payment. The buyers do not have to pay for this fee out of their pocket. The fee change will affect any mortgage applications placed on June 1st. Any application received by the lender before June 1st will receive the current mortgage insurance fee regardless of the closing date of the purchase.
mortgageinsurancefeeincreasejune1,2015
Fees listed below in bold are fees effective June 1,2015
| Up to and including 65% | 0.60% | 0.60% |
| Up to and including 75% | 0.75% | 0.75% |
| Up to and including 80% | 1.25% | 1.25% |
| Up to and including 85% | 1.80% | 1.80% |
| Up to and including 90% | 2.40% | 2.40% |
| Up to and including 95% | 3.15% | 3.60% |
| 90.01% to 95% — Non-Traditional Down Payment | 3.35% | 3.85% |