Mortgage insurance premium rates increase today. Mortgage insurance is required by for home buyers purchasing with a down payment of less than 20 per cent and is usually rolled into to the total mortgage amount. The rate increases have minimal impact on the monthly costs of borrowing. For example, if a home is purchased for $650,000 with 10% down with a 5-year fixed term mortgage, the monthly cost of borrowing is now $19.00 more than it was prior to the rate increase. The table below outlines the new rate increases:
|Down payment||Standard Premium prior to March 17, 2017||Standard Premium effective March 17, 2017|
|15% – 20%||1.80%||2.80%|
|10% – 15%||2.40%||3.10%|
|5% – 10%||3.60%||4.00%|
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