New Brunswick CMHC Insurance

CMHC insurance rates and regulations in New Brunswick are the same across Canada. Insurance rates vary from 2.80% to 4.00% depending on your down payment and your income. Additional federal regulations on CMHC insurance also apply:

• CMHC insurance is mandatory for all homes with down payments lower than 20%.
• Homes purchased for more than $1 million are not eligible for CMHC insurance, therefore requiring homeowners to put more than 20% down.
• The maximum amortization period on CMHC insured mortgages is 25 years.
• Homes sold over $500,000 can no longer be purchased with a 5% down payment. The new minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.

The calculated CMHC insurance premium is added to your mortgage amount, and is paid off in your monthly mortgage payments over your mortgage’s amortization period.

New Brunswick Mortgage Default Insurance Rates

CMHC insurance rates differ depending on your down payment percentage. A higher down payment will result in lower insurance rates. Your insurance premium is then calculated using this rate and your mortgage amount.

Note: your amortization period must be 25 years or less.

Sample Calculation for CMHC insurance in New Brunswick:

Let’s say you have bought a $300,000 home with a $40,000 down payment and an amortization period of 25 years. Your insurance premium would be calculated as follows:

• $40,000 (down payment) ÷ $300,000 (home price)
  = 13.33% (down payment percentage)
  
  
• $300,000 (home price) - $40,000 (down payment)
  = $260,000 (mortgage before CMHC)
  
  
• $260,000 (mortgage before CMHC) × 3.10% (CMHC tax rate)
  = $8,060 (CMHC insurance premium)
  
  
• $260,000 (mortgage before CMHC) + $ 8,060 (CMHC insurance premium)
  = $268,060 (total mortgage)

You will pay the insurance premium of $8,060 in your monthly payments.

New Brunswick mortgage default insurance rates with a non-traditional down payment

Examples of non-traditional sources of down payment include borrowed funds and gifts from non-immediate family members. Using non-traditional sources will result in a rate increase on your CMHC insurance for down payments from 5% to 9.99%

New Brunswick mortgage default insurance rates for self-employed, non-verified income

Self-employed home buyers are also charged higher insurance premiums. The minimum down payment required for self-employed home buyers is 10%, and insurance premiums for down payments from 10% - 19.99% are higher than those of regular applicants.