CMHC fee increases could add hundreds of dollars to mortgage cost

CMHC fee increases could add hundreds of dollars to mortgage cost

CMHC fee increases could add hundreds of dollars to mortgage cost CMHC is to triple the charges it makes to some financial institutions. The fee increases will be for guaranteeing loans in the mortgage-backed securities market, which the agency operates under the National Housing Act. Some experts are predicting that the hike in fees will filter down to homebuyers with the likelihood of a few hundred dollars being added to the cost of a mortgage. The fee for mortgages with a five-year maturity will rise from 0.2 per cent to 0.6 per cent. The move could however benefit smaller lenders as for annual mortgage guarantees below $6 billion the new rate will be 0.3 per cent. 
11 Comments
  • Barb 2014-12-15 8:03:49 AM
    The article doesn't mention the reason for the increase. Why is the increase only for some Financial Institutions? Have they seen an increase in delinquency in MBS loans?
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  • Gary 2014-12-15 9:34:01 AM
    It appears that CMHC has forgotten the reason that the agency was originally formed--to help provide Canadians with affordable housing. Common sense tells you that the additional costs will be passed onto the borrower. And this as well as the other restrictive changes all stem from a few years ago when Flaherty was afraid to walk up the hill and get the agency's limit increased beyond the $600 Billion that was established so many decades ago.
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  • Mortgage Delivery Guy 2014-12-15 9:36:33 AM
    Doesn't look much but over all every expense adds up for a first time home buyer.
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