CMHC reduces homeowner mortgage loan insurance premiums



Canada Mortgage and Housing Corporation (CMHC) is pleased to announce reductions in homeowner mortgage loan insurance premiums by 15%, effective July 14, 2003

Over the years, CMHC mortgage insurance products have responded to the changing needs of Canadians. CMHC introduced innovations such aspurchasing a home with just 5 per cent down, financing renovations at the time of purchase and most recently the opportunity to refinance up to 90 per cent of the equity in the home, to provide homeowners with greater choice and home financing flexibilities. The premium for mortgage loan insurance is based on the amount of the Loan, in relation to the value of the home. The premium may be paid in cash or added to the mortgage.

The following are the new premiums:

Loan Amount as a % of value of the home
Premium on total Loan Prior to July 14, 2003
Premium on total Loan Effective July 14, 2003
Up to and including 75% 0.75% 0.65%
Up to and including 80% 1.25% 1.00%
Up to and including 85% 2.00% 1.75%
Up to and including 90% 2.50% 2.00%
Up to and including 95% 3.75% 3.25%
Please note that application fees are unchanged.

A news release regarding this announcement is available on

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