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Mortgage Insurance Premiums Rising for Homebuyers with Less Than 10% Down

By Joannah Connolly Apr 2, 2015

UPDATE APRIL 6: Genworth Canada announced April 6 that it will be matching CMHC's mortgage increases from June 1. Genworth Canada's premiums are identical to those of CMHC. See full story below.

Homebuyers with less than a 10 per cent down payment will be subject to an increase in mortgage insurance premiums after June 1, the Canada Mortgage and Housing Corporation (CMHC) announced April 2.

The higher premium will result in an average increase of about $5 to their mortgage payments. The CMHC said this is not expected to have a material impact on housing markets.

Premiums for homebuyers with a down payment of 10 per cent or more remain unchanged.

The changes do not apply to mortgages currently insured by CMHC – so homeowners with higher than 90 per cent loan-to-value ratio on their current properties will not be affected.

“CMHC completed a detailed review of its mortgage loan insurance premiums and examined the performance of the various sub-segments of its portfolio,” said Steven Mennill, CMHC’s senior vice-president, insurance. “The premium increase for homebuyers with less than a 10 per cent down payment reflects CMHC’s target capital requirements, which were increased in mid-2014.”

Effective June 1, 2015, CMHC mortgage insurance premiums for new buyers will be:

Loan-to-Value Ratio

Standard Premium (Current)

Standard Premium (Effective June 1, 2015)

Up to and including 65%



Up to and including 75%



Up to and including 80%



Up to and including 85%



Up to and including 90%



Up to and including 95%



90.01% to 95% – Non-Traditional Down Payment



Joannah Connolly
Joannah Connolly is editorial director of Glacier Real Estate, Glacier Media's real estate division. Joannah writes and curates real estate news for Glacier Media's local newspaper websites, including the Vancouver Courier, North Shore News, Burnaby Now, Tri-City News and others. She also oversees editorial content in Real Estate Weekly Homes, West Coast Condo, Western Investor and Glacier's special real estate publications. A dual Canadian-British citizen, Joannah has 22 years of journalism and editing experience in Vancouver and London, with a background in construction, architecture, healthcare and business media. Joannah has appeared on major local TV outlets as a real estate commentator, has moderated and spoken on various industry panels, and spent two years hosting the Real Estate Therapist radio show on Roundhouse Radio.
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