On April 2nd, 2015, Canada Mortgage and Housing Corporation (CMHC) have announced an increase in mortgage insurance premiums.
According to the CMHC, the increase will be in effect starting June 1st, 2015. This increase is of around 15% and is only for the home purchases with a down payment of 10% or less.
Purchasing CMHC insurance is a requirement for all homebuyers if the down payment on a mortgage is less than 20%. With this recent insurance premium increase, if your down payment is less than 10%, your insurance cost will increase by around 15%.
If you are in the process of getting a mortgage and submit your mortgage application to the CMHC by June 1st, 2015, you will be charged the current (lower) insurance premium.
For more details about this mortgage insurance premium increase, visit the CMHC News Release.