CMHC Premiums Set to Increase March 17, 2017

If you are thinking about buying in the near furture and plan to have less then 20% down we recommend giving us a call.  

It will cost more for a CMHC insured mortgage starting March 17, 2017. Now is a great time to connect with any clients sitting on the fence to help save the extra costs before the increase takes effect.

To give you an example, for clients looking to use the new BC Home loan for part of their down payment, the premium is jumping from 3.85% to 4.50%. For a purchase of 500k the mortgage looks like this today:

$500,000 - 5% ($25,000)= $475,000 + 3.85% ($18,287.50) = $493,287.50

On March 17 it looks like this:

$500,000 -5% ($25,000)= $475,000 + 4.50% ($21,375)= $496,375

The full schedule of increases can be found here:

https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2017/2017-01-17-0830.cfm

The above was provided by:

Lynn McLellanBA                                                                                  

A Member of the Verico Broker Network- 2016 Winner Broker Network of the Year

Dreyer Group Mortgages #308-15252 32nd Ave, Surrey, BC V3Z 0R7

Phone: 604 536 8400. Cell/Text: 604 518 2383.  Fax: 604 535 9413.  Apply Online http://www.mortgageweb.ca/Lynn