Canada's largest private mortgage default insurer is matching CMHC's premium hikes
Genworth Canada announced late Tuesday that it would be increasing its mortgage insurance premium rates for homebuyers - matching CMHC's premiums which come into affect March 17th, 2017.
This wasn't much of a surprise for industry folk, as this sort of thing has occurred in the past. It took only 12 hours for Genworth Canada to announce that it too, will be following CMHC's footsteps in increase mortgage insurance premium rates for homebuyers in Canada.
Genworth doesn't believe the premium rates hike will have "significant impact" on the affordability for homebuyers across the country. As mentioned in our previous article for CMHC's initial announcement, Genworth believes the monthly mortgage payment for homebuyers putting down the minimum 5% down payment will face an approximate $6 monthly increase to their payment (Based on a $300,000 mortgage, 3% interest rate and a 25-year amortization.).
Canada Guaranty, the third largest insurer in the country has announced it is continuing to monitor and study the changes announced by CMHC. It is widely expected that Canada Guaranty will also match CMHC and Genworth's premium rates increase.
With the changes only a month and a half away, now is the time to speak with a mortgage broker to see how or whether these changes will affect your pending home purchase or pre-approval. Our team of mortgage brokers are ready and well prepared to help assess your situation, whether you are currently pending a home purchase or want to create a plan to do so in the coming months.
Click here to find a list of our offices located in Ottawa and the surrounding regions. Visit the Financial Post to read their full article on the latest announcement.