CMHC insurance question

[JakeCob]

Hi! I'm planning to get a mortgage to buy my new house. I'm purchasing it with 5% down payment. According to the recent CMHC changes I am liable for the 15% increase in insurance premium. If I sell this place 1 year later do I get some sort of refund on the premium, or is it a sunk cost?Also, if I'm to buy more houses, do I have to pay for another entire CMHC premium, or is the insurance portable?

 

[TOphotog]

The CMHC premium has nothing to do with the property, it's mortgage insurance. If you pay out that mortgage when you sell, and then get a NEW mortgage on the second property, you will have to pay another CMHC premium on that mortgage. You get no refunds. What you can do, when selling your house, is ask the bank if you can port your mortgage to the second property. That way, they're just transferring the debt from one property to another. You won't have to pay a second CMHC fee.

 

[robofree]

The mortgage insurance is not portable. If you get a second mortgage you have to buy another insurance for that mortgage. I heard that the mortgage insurance is getting really expensive in Alberta and It might happen here also. Both CMHC and Genworth has announced an increase of 15% to mortgage loan insurance premiums for anyone purchasing a home with less than 10% down payment.So If you buy a home for $500k with 5% downpayment the insurance premium alone will cost you an extra $21370.
Source :http://www.albertamortgagecentre.com/mortgage-loan-insurance-is-about-to-get-a-bit-more-expensive/

 

[Toronto Rocks]

CMHC's Premium Calculator can be found at

http://www.cmhc-schl.gc.ca/en/co/buho/buho_023.cfm

 

[James]

Hi! I'm planning to get a mortgage to buy my new house. I'm purchasing it with 5% down payment. According to the recent CMHC changes I am liable for the 15% increase in insurance premium. If I sell this place 1 year later do I get some sort of refund on the premium, or is it a sunk cost?Also, if I'm to buy more houses, do I have to pay for another entire CMHC premium, or is the insurance portable?

Congratulations on finding a new house, soon to be your new home. There's a lot of talk about people not being able to afford homes ad nauseam in the media, so I was just curious as to the general whereabouts you decided to buy?