The premiums on mortgage insurance have gone up nationwide from Canada Mortgage Housing Corp. As of now, CMHC’s average clients will pay a fee of about $5 extra for each month. For each homebuyers paying a down payment of less than 20 per cent, the price of mortgage insurance differs in the country as calculations by mortgage-comparison Ratehub.ca reveal.
Take, for instance, a homebuyer in Halifax where the standard home price is $279,362 would pay $4.72 extra each month under CMHC’s latest premiums. Over the life of a 25-year mortgage, that’s up by $1,413.
The mortgage insurance premiums for Vancouver would be $16.35 extra per month or $4,904 over 25 years, the average home price has blown up to $995,583. In each case, Ratehub made assumptions that buyers are paying a minimum down payment needed for five-year, a fixed-rate remunerated mortgage of 2.42 per cent over 25 years. Other than monthly payments, huge lump sum payments can be made for mortgage insurance payments.