The most important takeaway from the latest CMHC new release impacts new home buyers only – not current mortgage holders.

Shortly after CMHC’s news release, the two other mortgage insurance providers, Canada Guaranty and Genworth, also announced the same increases. Not a surprise – the three often move in lock step, especially when it comes to pricing.

Based on a median home price of $430,900, the net impact to the average family, in Calgary, purchasing a home, with a 5% down payment, is $1,637.42 – or a $7.83 per month increase in their mortgage payment.

With the negligible change on the average borrower’s monthly mortgage payments, we are not expecting to see a huge impact on affordibility for over 99% of purchase transactions.

Will this news play a role in boosting the Spring Market with a rush to complete prior to May 1st? No evidence to support this theory as of yet.

Will it increase insurer profits making them an even more stable than they already are? Perhaps, but most likely this news is in response to a December 2013 announcement regarding the Federal Government applying slightly higher costs to CMHC. Albeit with a wider profit margin based on original calculations.

And so we see consumer impacted by the trickledown effect as the increased cost is passed onto them in the form of higher CMHC premiums.