Privatesector mortgage insurer Genworth follows CMHC in raising premium

TORONTO — Genworth Canada says it will be increasing the premium for some of its mortgage insurance, starting June 1, matching a move announced last week by Canada Mortgage and Housing Corp.The rate will go up by 15% for buyers who have a downpayment of 10% or less.Mortgage insurance provides protection for lenders who provide money to home buyers and owners.Canada Mortgage and Housing Corp takes aim at homebuyers with less than 10% downInsurers pushed away by concerns over shoddy condos in CanadaHow to get the best possible mortgage rateThe home buyer’s or owner’s premium is determined by several factors including how much is borrowed and how much the property is worth.Genworth says it believes the higher premiums for people with small down payments won’t have a major impact on home affordability but the higher pricing will support the long-term health of Canada’s system for financing housing.The new rate for a loan-to-value ratio up to 95% is 3.6%, up from 3.15%. For a loan-to-value ratio from 90.01 to 95%, but a non-traditional down payment, the premium climbs to 3.85% from 3.35%.

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