Effective June 1, 2015, Genworth Canada will increase its mortgage insurance premium rates for homebuyers who have less 10% of their down payments.
Those buyers’ rates will rise by approximately 15%, says Stuart Levings, president and CEO of Genworth Canada. “[That’s] reflective of higher capital requirements, and supports the long-term health of Canada’s housing finance system.”
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Let’s say a first-time homebuyer is taking out a 95% loan-to-value mortgage of $300,000, explains Levings. As a result, his monthly mortgage payment will go up by about $6, based on a 2.79% interest rate and 25-year amortization period.
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% |
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