March 14th, 2017
Lenders typically require mortgage loan insurance when a homebuyer makes a down payment of less than 20 %. The premium can be paid in a single lump sum but more frequently is added to the mortgage principal and repaid over the life of the mortgage as part of regular mortgage payments.
For the average CMHC-insured homebuyer, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. For example, if your property was $266,500.00 and you have a downpayment of 5% or $13,325.00, you would have a mortgage of approximately $253,175.00 and need mortgage insurance.- Prior to the increase, cost of MI is 3.60% of $253,175.00 or $9114.30
Down payments of 10 and 15 percent will have an even larger increase to their premiums.
If you have questions on how this increase will aff ect your mortgage, please contact Jivan Sanghera he would be
happy to consult with you.
Jivan Sanghera, Circle Mortgages, Phone 905-334-9111