On April 2nd CMHC announced an increase in their mortgage insurance premiums for homebuyers placing less than 10% down. The premium increase will raise the cost of mortgage insurance by $450.00 per $100,000 of mortgage balance effective June 1, 2015.
A more meaningful metric is that this translates into a net cost of just $5.00 per month for the average CDN homebuyer submitting their purchase transaction for financing June 1, 2015 and beyond.
There is no ability to avoid this premium with a Pre-Approval. The older lower premium will only be applicable to purchase transactions submitted for approval by the end of May, 2015.