CMHC to increase mortgage insurance premiums

mortgage-ratesThe Canada Mortgage and Housing Corporation is increasing mortgage insurance premiums for the first time in more than a decade.  CMHC is raising premiums for insuring mortgages on Canadian homes in an effort to limit government exposure to the housing market.  CMHC will boost mortgage loan insurance premiums by approximately 15 percent for homes, and rental properties with less than four units, effective May 1, 2014.

“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations.  CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long-term stability of the financial system.”

For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment, according to the mortgage insurance agency.

CMHC says the increase is designed to boost capital levels and is not expected to have a material impact on the housing market. The increase does not apply to mortgages currently insured by CMHC.



  • Loan-to-Value Ratio of up to 65% – Premium increases from 0.50% to 0.60%
  • Loan-to-Value Ratio of up to 75% – Premium increases from 0.65% to 0.75%
  • Loan-to-Value Ratio of up to 80% – Premium increases from 1.0% to 1.25%
  • Loan-to-Value Ratio of up to 85% – Premium increases from 1.75% to 1.80%
  • Loan-to-Value Ratio of up to 90% – Premium increases from 2.0% to 2.5%
  • Loan-to-Value Ratio of up to 95% – Premium increases from 2.75% to 3.15%