CMHC to increase insurance premiums

After the annual review of insurance products and capital requirements, CMHC made the decision to raise the mortgage loan insurance premiums for homeowner and 1-4 unit rental properties effective May 1 , 2014. This increase will apply to mortgage loan insurance premiums for owner occupied, self-employed and 1-4 unit rental properties, including low-ratio refinance premiums.  This increase will not affect mortgages currently insured by CMHC.

CMHC’s Capital management framework is aligned with international practices and Canadian guideline of mortgage insurers.  The increase in premiums will make the financial system more stable and resilient and is in line with Canadian and international industry trends.  The higher premiums reflect CMHC’s higher capital targets said Steven Mennill, Vice president of CMHC’s Insurance Operations.  CMHC’s capital holdings reduce the exposure of taxpayers to the housing market and contribute to the long term stability of the financial system.  The higher premium will result in an increase of approximately $5 per month for the average home buyer requiring CMHC insurance on their mortgage.

Effective May 1, 2014 CMHC will increase the premiums  for purchases on owner occupied (1-4  units) by approximately 15% on average for all loan to value ratios:

Loan-to-Value Ratio

Standard Premium


Standard Premium

(Effective May 1st, 2014)

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



CMHC reviews premiums on an annual basis and will now be doing this during the first quarter of the year.  The homeowner premium increase follows changes that CMHC made to its portfolio insurance product earlier this year.  As Canada’s national housing agency, CMHC has 65 years of experience in helping house Canadians by providing a variety of quality, environmentally sustainable and affordable housing solutions to create healthy communities and cities across our country.


For additional information please call 250 862 1806 or email [email protected].

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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

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