TORONTO, Jan. 17, 2017 /CNW/ - Effective March 17, 2017, Genworth Canada will increase its transactional mortgage insurance premium rates for homebuyers.
"We believe this new pricing is prudent and reflects the new regulatory capital framework for mortgage insurers that came into effect on January 1, 2017," said Stuart Levings, President and CEO of Genworth Canada. "Genworth Canada remains committed to helping Canadians achieve responsible homeownership. We believe these pricing actions are supportive of the long-term safety and sustainability of the Canadian housing finance system."
The premium rate changes are not expected to have a significant impact on affordability for homebuyers. To illustrate, a typical first-time homebuyer making a 5% down payment will see an increase of approximately $6 in their monthly mortgage payment on a $300,000 mortgage amount. This assumes a 3 per cent interest rate and a 25-year amortization period.
The new premium rates for standard owner-occupied purchase applications submitted on or after March 17, 2017 are as follows:
|
Loan-to-Value Ratio
|
Standard Premium (Current)
|
Standard Premium (Effective March 17, 2017)
|
|
Up to and including 65%
|
0.60%
|
0.60%
|
|
Up to and including 75%
|
0.75%
|
1.70%
|
|
Up to and including 80%
|
1.25%
|
2.40%
|
|
Up to and including 85%
|
1.80%
|
2.80%
|
|
Up to and including 90%
|
2.40%
|
3.10%
|
|
Up to and including 95%
|
3.60%
|
4.00%
|
|
90.01% to 95% Non-Traditional Down Payment
|
3.85%
|
4.50%
|
Genworth Canada will be working with its customer base to ensure a smooth implementation of the new rates. The changes will not affect existing Genworth insured mortgages or applications received prior to March 17, 2017.
About Genworth Canada
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at September 30, 2016, Genworth Canada had $6.6 billion total assets and $3.6 billion shareholders' equity. Find out more at www.genworth.ca.
SOURCE Genworth MI Canada