Mortgage insurance premiums set to rise

Homeowners could be facing mortgage insurance price increases next year according to the boss of Canada’s largest private mortgage insurer.

Genworth’s CEO Stuart Levings says that the Office of the Superintendent of Financial Institutions will require insurers and lenders to hold greater capital reserves to reduce risk to the financial system. That, he says, will cut underwriting profits to unacceptable levels.

Levings forecasts that premiums would need to increase by around 15 per cent to cover the additional costs, although any move would probably track the CMHC’s rates.

Speaking to the Globe and Mail, he said that there could be new opportunity in the market with early talks underway with some mortgage lenders which could see new insurance products available to those not eligible for portfolio insurance.
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?