The annoucement made earlier this year by CHMC regarding increases to their mortgage insurance premiums is set to take effect Thursday of next week. The 2 other mortgage insurers are following suit making this a unilateral price increase in the oligopic mortgage insurance industry.
You still have a chance to avoid the increase by getting your mortgage approved by CMHC before the May 1st deadline. However in order to give your mortgage lender sufficient time to process your mortgage you will likely need to have your application in by Monday April 28th. This is the deadline set by Scotiabank and is designed to ensure that they meet your expextations. Some lenders have set deadlines as early as Friday April 25th.
The increase is a 15% rise in the amount of the mortgage insurance premium and will amount to an increase by as much as $1,200 on a $300,000 mortgage. CMHC has downplayed the increase as only a $5 increase to the average monthly mortgage payment.
Dr. Freddie So
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F.S.C.O. Brokerage License # 11931 - Broker Owner: Dan Wowk: Mortgage Agent #M09000576
Head Office: 2386 Lionstone Drive, Oakville, Ontario L6M 4S9 | Phone: 905-847-0100