CMHC (Canadian Mortgage Housing Corporation), a government crown corporation announced this morning that as of May 1st, 2014 premiums on insured mortgages will be going up.
See the table below to see the increases. CMHC has not raised premiums since the 1990's and actually lowered them twice in the early 2000's.
It is expected that private competitors, Genworth and Canada Guaranty, will follow suit and raise premiums as well.
On a purchase of a $350,000.00 house with 5% down the increase will raise monthly payments by $6.99, or $419 over a five year term.
This will affect the buying power of First Time Home Buyers the most, who have already been hurt by the limiting of amortization to 25 years along with other recent changes to flexible down payment options.