Genworth Financial Mortgage Insurance Co. Canada will increase its transactional mortgage insurance premium rates for homebuyers, effective March 17.
The increase in premium rates is the result of an increase in the capital required for certain loan-to-value categories due to the new requirements for residential mortgage insurers that went into effect Jan. 1.
The standard premium for loan-to-value ratios up to and including 65% will remain at 0.60%.
However, the standard premium rate for LTV ratios up to and including 75% will increase to 1.70% from 0.75%. The rate for a LTV ratio up to and including 80% will climb to 2.40% from 1.25%, while the rate for a LTV ratio up to and including 85% will rise to 2.80% from 1.80%. For LTV ratios up to and including 90%, the rate will increase to 3.10% from 2.40%, and premiums for a LTV ratio up to and including 95% will be 4.00%, compared with the previous standard premium of 3.60%.
The standard premium for a LTV ratio of 90.01% to 95% with a nontraditional down payment will increase to 4.50% from 3.85%.
The new rates will apply to standard owner-occupied purchase applications submitted on or after March 17.