Sunday, July 22, 2018

High Ratio Mortgage Insurance Premiums

The following is a break down of the premiums depending on the loan to value ratio (LTV), for high-ratio mortgage loans offered for programs through both CMHC and Genworth Financial:

LTV Ratio Total Loan Amount Top-up Portion
Up to 65% 0.60% 0.60%
65.01% - 75% 0.75% 2.60%
75.01% - 80% 1.25% 3.15%
80.01% - 85% 1.80% 4.00%
85.01% - 90% 2.40% 4.90%
90.01% - 95%* 3.15% 4.90%

There are also programs available by the insurers that allow for the self-employed borrower unable to prove qualified income, to obtain mortgage financing under an Alt "A" program, who otherwise would not qualify under the traditional guidelines. Ask one of our Mortgage Edge consultants for more details on the Alt "A" program.

Extended amortizations of up to 30 years are also available to borrowers through the insurers at a slightly higher premium, which allows for greater affordability. Ask us for further details.

On occasion, a lender may require that a conventional deal be insured through the mortgage insurer, in which case the following premiums apply.

Applicants should be careful to understand why a lender is insisting on insuring a transaction when the LTV is less than 80%, so that they are not being unnecessarily insured.

Credit Score GDS TDS
<680 35% 42%
680+ 39% 44%

*On approved credit only, (OAC).
Fees may apply in some circumstances on unqualified transactions.