CORRECTION: CMHC to Increase Mortgage Insurance Premiums
(firmenpresse) - OTTAWA, ONTARIO -- (Marketwired) -- 01/17/17 -- In the press release issued this morning at 8:30 am ET, the contact information contained an incorrect phone number. The complete and corrected release follows.
CMHC is increasing its homeowner mortgage loan insurance premiums effective March 17, 2017. For the average CMHC-insured homebuyer, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment.
"We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home," said Steven Mennill, Senior Vice-President, Insurance. "Overall, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability."
Capital requirements are an important factor in determining mortgage insurance premiums. The changes reflect OSFI''s new capital requirements that came into effect on January 1st of this year that require mortgage insurers to hold additional capital. Capital holdings create a buffer against potential losses, helping to ensure the long term stability of the financial system.
During the first nine months of 2016:
A table is available at the following link:
Premiums are calculated based on the loan-to-value ratio of the mortgage being insured. The premium can be paid in a single lump sum but more frequently is added to the mortgage principal and repaid over the life of the mortgage as part of regular mortgage payments. Additional details and scenarios are included in the backgrounder below.
CMHC regularly reviews its premiums and sets them at a level to cover related claims and expenses while also reflecting the regulatory capital requirements.
CMHC is Canada''s most experienced mortgage loan insurer. Our mortgage loan insurance enables Canadians to buy a home with a minimum down payment starting at 5%. As a Crown corporation, CMHC is the only mortgage insurer whose proceeds benefit all Canadians.
As Canada''s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need and offers objective housing research and information to Canadian governments, consumers and the housing industry.
For additional highlights please see the attached backgrounder.
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BACKGROUNDER
Tables are available at the following link:
(i)Interest is calculated using the qualifying rate
Contacts:
Karine LeBlanc, Media Relations
(613) 740-5413
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 17.01.2017 - 09:24 Uhr
Sprache: Deutsch
News-ID 1480861
Anzahl Zeichen: 3095
contact information:
Contact person:
Town:
OTTAWA, ONTARIO
Phone:
Kategorie:
Commercial Real Estate
Typ of Press Release:
type of sending:
Date of sending:
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"CORRECTION: CMHC to Increase Mortgage Insurance Premiums
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