Forum

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 17 Jan 2017, 09:23 AM Agree 0
CMHC announced early Tuesday it is increasing its loan insurance premiums effective March 17
  • Omer Quenneville | 17 Jan 2017, 09:43 AM Agree 0
    I like how they do that, they hide the increase behind $5.00 per month instead of stating it would add $1000+ to cost the average home. Mortgage Brokers News is no better, it didn't to catch it and report it. I guess that makes MBN repeaters and not reporters. I'm disappointed.
  • Jake Abramowicz | 17 Jan 2017, 10:01 AM Agree 0
    Here's an idea. How about in your news item you actually show us the increase?

    It's 4% by the way, up from 3.6%.
  • Tony Piattelli | 17 Jan 2017, 10:50 AM Agree 0
    This is nothing more than another money grab. Can anybody tell me when the last time CMHC lost money if ever? If they've never lost money then why the need to increase premiums? The rationale that they are using is nothing short of bs. Oh yea, to support the increased capital required due to unnecessary rule changes that our current liberal government put in place which will do nothing outside of increase costs to consumers again.
  • Ralph Cramdown | 17 Jan 2017, 11:43 AM Agree 0
    Tony, I could tell you the last time CMHC lost so much money that it had to be bailed out by the federal government via a capital infusion. Or you could do a bit of online research and find out for yourself.
  • Russ Cameron Broker | 17 Jan 2017, 02:48 PM Agree 0
    Tony I agree in fact I thought CMHC would be phased out by now along with the Liberals but I guess a gov't entity seldom dies..because they have lotsa paid employees. In fact GE is all we need out here.. why do we keep paying these employees the whole system could be run electronically and it would still make money for the fed govt ..in fact I've been telling new applicants you need 10 % down if you want a good chance of obtaining approval
  • Kelly Rowe | 17 Jan 2017, 03:55 PM Agree 0
    Nothing short of robbery. Totally taking advantage of the first time home buyer. I'm soooo beyond words disappointed with this Liberal government.
  • nick | 18 Jan 2017, 09:15 AM Agree 0
    and not to forget that his increase in premium also means an increase in pst on the premium in ontario. When will the voters learn that these left wing governments have no idea how to run a country. More taxes, more fees and less services. Where is Harper when you really need him.
  • Brad | 18 Jan 2017, 11:48 AM Agree 0
    The other item not mentioned in CMHC announcement is that it takes another .40% out of the equity in the home. So on a $350k purchase, an additional $1400 is removed from homeowner equity. Add the extra payment cost over 25 years of $1887 and the toal hit on the consumer is $3287.
  • Tony Piattelli | 18 Jan 2017, 12:00 PM Agree 0
    Ralph,
    Don't mix up a capital infusion to support the demand for high ratio mortgage versus being profitable. I checked the past history and noticed that even in the years where the losses were high, CMHC still posted a profit. Cash infusion to allow for continued growth and demand is a lot different than posting losses. Can you please tell me the years that CMHC posted losses since inception? Just go online and you'll see that their profits have continued to climb so much so that they were unanticipated for 2015 yet they continue to raise the premium. How does this make any sense?
  • Francis | 18 Jan 2017, 03:51 PM Agree 0
    Past performance of CMHC doesn't have anything to do with the rate increases. The rates are going up because the capital required for each policy went way up Jan 1. New policies require more capital so the rates have to go up to make new business economically viable.
Post a reply