Effective June 1st, 2015, the mortgage loan insurance premium for homebuyers with less than a 10% downpayment will increase by approximately 15% through CMHC mortgage default insurance.
Mortgage default insurance is required if you put less than 20% down. Note that for $1,000,000 + homes, a minimum downpayment of 20% is required.
Example: If you bought a home today with 5% down, and needed a mortgage of $350,000, your CMHC insurance premium would be:
$350,000 x 3.15% = $11,025
If you waited until after June 1 with this same scenario, your new CMHC premium would be:
$350,000 x 3.60% = $12,600
Here is a video to help explain how mortgage insurance works:
Always happy to answer any questions you might have!
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