CMHC Lower Mortgage Loan Insurance Premium

CMHC Lower Mortgage Loan Insurance Premium

Effective immediately, CMHC and GE Capital have announced that they are lowering the Mortgage Loan Insurance Premium by 15% for all home buyers in the 90.1% to 95.0% Loan to Value range. If you have any clients who are putting 5% down be sure to advise them of the reduction in the premiums. For a home buyer with a $160,000 mortgage and 5% down, the benefit to the customer is $800.

CMHC and GE are reducing the Insurance Premium from 3.25% to 2.75% for all down payments from 5% to 9.99%. With the Flex Down Product (i.e. client has borrowed their 5% down payment) the Insurance Premium has dropped from 3.4% to 2.9%. Any mortgages that closed on April 22nd and beyond will benefit from this reduction. For the next few months until CMHC/GE and all the Lenders have their systems updated, borrowers will pay the current Insurance Premium and will receive a rebate in the mail 4 to 6 weeks after closing. Once all of the Lenders have updated their systems the actual Insurance Premium will be charged to the borrower and a rebate will not be necessary. More Great News...

I have a Lender that is offering a limited time special of a Fully Open 3 Year Variable Rate Mortgage at Prime minus .85%! This will make the interest rate 3.40% with a fully open mortgage product! The Deals just keep getting better this Spring! Fixed Rate Mortgages remain stable today with the best 5 year fixed rate being 4.55%. So, now I have to think of something to ramble on about...

Heather Paterson