Who will be effected by the CMHC increases effective tomorrow?

CMHC is increasing home insurance premiums effective 01 May 2014.

Note that this increase will only effect NEW policies not mortgages already in existence.

The highest premiums are paid by those who put down just five per cent of the home’s purchase price.  At that level, the mortgage insurance premium rises from 2.75% to 3.15%. On a $450,000 mortgage at 3.49 per cent amortized over 25 years, the insurance fee would rise from $12,375 to $14,175. While $1,800 sounds like a big increase, it can be financed over the life of the whole mortgage , so the monthly cost of the insurance premium in this case would rise by less than $9 a month.

Original article from: www.cbc.ca/news/business