Genworth follows CMHC with MI premium hike
Steve Randall
REP
Canada’s largest private mortgage insurer is increasing its premiums, following a hike by CMHC.
Genworth says that the change is not expected to have a significant impact on homeowners with a 5 per cent downpayment on a $300,000 mortgage rising by $6 per month. The increase in that example would be from 3.6 per cent to 4.0 per cent.
While there will be no increase in premiums for loan-to-value ratios up to 65 per cent, the increases are greater for other values.
|
Loan-to-Value Ratio |
Standard Premium (Current) |
Standard Premium (Effective March 17, 2017) |
|
Up to and including 65% |
0.60% |
0.60% |
|
Up to and including 75% |
0.75% |
1.70% |
|
Up to and including 80% |
1.25% |
2.40% |
|
Up to and including 85% |
1.80% |
2.80% |
|
Up to and including 90% |
2.40% |
3.10% |
|
Up to and including 95% |
3.60% |
4.00% |
|
90.01% to 95% Non-Traditional Down Payment |
3.85% |
4.50% |
“We believe this new pricing is prudent and reflects the new regulatory capital framework for mortgage insurers that came into effect on January 1, 2017,” said Stuart Levings, President and CEO of Genworth Canada. “Genworth Canada remains committed to helping Canadians achieve responsible homeownership. We believe these pricing actions are supportive of the long-term safety and sustainability of the Canadian housing finance system.”
The new premium rates will be effective March 17, 2017, in line with the changes for CMHC.
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