CMHC to hike mortgage insurance premiums March 17, 2017Synergy Mortgage
Canada Mortgage and Housing Corp. is hiking mortgage insurance premiums for home buyers. The Crown corporation said the increases will amount to an average of $5 a month more for new borrowers.
“We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home,” said Steven Mennill, CMHC’ senior vice-resident of insurance in a news release. “Over all, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.”
The changes reflect stricter new capital requirements for mortgage lenders that the Office of the Superintendent of Financial Institutions introduced at the start of the year. The measure takes effect March 17.
More to come.