First National Financial LP

CMHC announces changes in premium rates effective June 19, 2023

  • First National Financial LP

Earlier this week, Canada’s national housing agency issued a bulletin advising of increasing premium rates for multi-unit properties.

The increases will be effective at midnight June 19, 2023 and affect insurance premiums for CMHC Standard Rental Housing, MLI Select, Retirement and Supportive Housing and Student Housing/Single Room Occupancy programs.

More specifically, CMHC premiums are increasing by 85 basis points for all standard mortgage insurance (including student and retirement) and 155 basis points for MLI select loans.

Mortgage applications submitted before 11:59 pm EST on June 18th, 2023 will be subject to the current premium schedule.

Notably, this is the first time since 2017 that CMHC has increased its premium rates. It indicated that the change was driven by its normal-course annual product review, and its adoption of new accounting standards known as IFRS 17.

At this time, CMHC indicated that no changes are being made to its base application fees, post-decision fees or premium surcharges.

Please contact your First National advisor for more information or to discuss your future financing strategies.