Genworth Canada Announces New Mortgage Insurance Premium Rates
TORONTO, April 6, 2015 /CNW/ - Effective June 1, 2015, Genworth Canada will increase its mortgage insurance premium rates for homebuyers with less than a 10 per cent down payment by approximately 15 per cent.
"This new pricing is reflective of higher capital requirements and supports the long-term health of Canada's housing finance system," said Stuart Levings, President and CEO of Genworth Canada. "Genworth Canada remains committed to helping Canadians achieve homeownership responsibly and we believe these changes will not have a material impact on affordability."
To illustrate, a typical first-time homebuyer taking out a 95 per cent loan-to-value mortgage of $300 000 will see an increase of approximately $6 in their monthly mortgage payment (based on a 2.79 per cent interest rate and 25-year amortization period).
The new premium rates for standard owner-occupied purchase applications submitted on or after June 1, 2015 are as follows:
| Loan-to-Value Ratio |
Standard Premium |
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% |
Genworth Canada will be working with its customer base to ensure a smooth implementation of the new rates.
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 December 31, 2014, Genworth Canada, had $5.8 billion total assets and $3.3 billion shareholders' equity. Find out more at www.genworth.ca.
SOURCE Genworth MI Canada
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