Owen McCarthy

Cell 780-266-6936 | owenmccarthy@me.com

  Mortgage Calculator

Calculate Your Payments

  Buyer Resources

Best Real Estate Advice

  Seller Resources

Selling For Top Dollar

  Mobile Listings

Search Anywhere Always

  Here To Help You

You Can Contact Me Always

 
Back to Blog

cmhc fees increase edmonton, alberta  

 

Just a reminder that the CMHC is rolling out new fees starting this Friday March 17, 2017 The Canadian Mortgage and Housing Corporation will start charging higher premiums in order to insure their mortgages.

 

Currently buyers who choose to buy a home with less than 20% of a down payment are required to pay a mortgage default insurance. This insures the lender in the case that the borrower defaults on their loan. The premium is based on the size of the loan and the amount of the down payment.

 

This is the first change CMHC has implemented since 2015, when they increased the size of the required down payment on homes over $500,000.  The new premium will not effect existing loans or those who have an application approved before March 17, so any new mortgage applications after Friday will take the new increased rate. According to CMHC the new rate will be based on the loan to value ratio of the mortgage.


So what does this mean for you as a homeowner? Here is what you can expect:

 

Example 1

 

A $250,000 mortgage will  see an increase of approximately $4.70 a month with a minimum 5% down payment

 

Example 2

 

A $350,000 mortgage will see an increase of approximately $6.59 a month with a minimum 5% down payment

 

Example 3

 

A $850,000 mortgage will see an increase of approximately $40 a month with a 15% down payment

 

If you have any questions regarding these new rates or would like to get more information please don't hesitate to contact me at 780-266-6936. I make myself available at all times.

 

-Owen McCarthy

Comments

No comments

Post Your Comment:

*indicates required fields.
Your Name:*
Please note, your email will not be shown publicly
Your Email (will not be published):*
Comment:*
Please type the text as it appears above:
Copyright 2017 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.