Mortgage insurer Genworth Canada has followed the footsteps of Canada Mortgage and Housing Corp. (CMHC) as it increase its mortgage insurance premium rates for homebuyers with less than 10 per cent down payment.
Similarly, Genworth’s insurance premium is up by 15 per cent in line with CMHC’s new rate that is also effective on 1 June.
"This new pricing is reflective of higher capital requirements and supports the long-term health of Canada's housing finance system," said Stuart Levings, the company’s president and chief executive, said in a release. "Genworth Canada remains committed to helping Canadians achieve homeownership responsibly and we believe these changes will not have a material impact on affordability."
The new premium rates for standard owner-occupied purchase applications submitted on or after June 1, 2015 are as follows:
Similarly, Genworth’s insurance premium is up by 15 per cent in line with CMHC’s new rate that is also effective on 1 June.
"This new pricing is reflective of higher capital requirements and supports the long-term health of Canada's housing finance system," said Stuart Levings, the company’s president and chief executive, said in a release. "Genworth Canada remains committed to helping Canadians achieve homeownership responsibly and we believe these changes will not have a material impact on affordability."
The new premium rates for standard owner-occupied purchase applications submitted on or after June 1, 2015 are as follows:
| Loan-to-Value Ratio | Standard Premium (Current) |
Standard Premium (Effective June 1st, 2015) |
| Up to and including 65% | 0.60% | 0.60% |
| Up to and including 75% | 0.75% | 0.75% |
| Up to and including 80% | 1.25% | 1.25% |
| Up to and including 85% | 1.80% | 1.80% |
| Up to and including 90% | 2.40% | 2.40% |
| Up to and including 95% | 3.15% | 3.60% |
| 90.01% to 95% Non- Traditional Down Payment |
3.35% | 3.85% |
