When a borrower offers to put no down payment at all (zero down) to purchase a home and to get a mortgage loan – is considered as a high risk borrower. People offering 5% are not exactly like the ones who have no money at all but they are at the higher end of the risk spectrum.
Canadian mortgage insurer CMHC (and Genworth) has decided to raise the bar for those people. From June 1st the premium will go up for them who are at the higher side of Loan to Value ratio.
|Loan-to-Value Ratio||Standard Premium
(Effective June 1st, 2015
|Up to and including 65%||0.60%||0.60%|
|Up to and including 75%||0.75%||0.75%|
|Up to and including 80%||1.25%||1.25%|
|Up to and including 85%||1.80%||1.80%|
|Up to and including 90%||2.40%||2.40%|
|Up to and including 95%||3.15%||3.60%|
|90.01% to 95% — Non-Traditional Down Payment||3.35%||3.85%|