As you may be aware, CMHC and Genworth Financial Canada have reduced homeowner mortgage insurance premiums as of July 14th, 2003.

The following are the new mortgage insurance premiums:

Purchases Loan-to-Value Ratio Premium on Total Loan     Up to and including 65% 0.50% Up to and including 75% 0.65% Up to and including 80% 1.00% Up to and including 85% 1.75% Up to and including 90% 2.00% Up to and including 95% 3.25%

Refinance Loan-to-Value Ratio Premium on Total Loan     Up to and including 65% 0.50% Up to and including 75% 0.65% Up to and including 80% 1.00% Up to and including 85% 1.75% Up to and including 90% 2.00% Up to and including 95% 3.25%

How does this affect your clients?

1. For high-ratio mortgages funded on July 14th or 15th 2003, the excess premiums charged will be calculated and applied against the Client’s principal balance, effective on the advance date. The Clients will be informed of this good news and the reduction in their mortgage principal amount in the ING Mortgage Broker Services Client Welcome Letter.
   
   
2. For mortgages that have a signed-back Commitment Letter but are not yet funded, the premiums will be recalculated before the funds are sent to the Solicitor. Brokers do not have to resubmit deals in order to for their clients to receive the reduced premium rate.
   
   
3. Each new mortgage application submitted will have the reduced premium amount applied. The correct amount will be detailed in the mortgage Commitment Letter.
   
   
4. This is a new initiative from CMHC and Genworth Financial Canada and all details have not yet been finalized. ING Mortgage Broker Services will provide updates as more details become available.
   

Additional information may be obtained by contacting CMHC, Genworth Financial Canada or by visiting their websites: www.cmhc.ca or www.gemortgage.ca.