Lower Mortgage Insurance Rates

Competition among mortgage insurers is paying off. 

Insurers are now increasingly basing mortgage premiums on a new policy called "risk-based" pricing.  This means that your mortgage insurance fees can now be based on your credit score.  No longer will you be slapped with a flat insurance fee if you don’t have the required 20% down payment. 

Here’s an example:  Just weeks ago you would have paid almost 4% of your mortgage in insurance fees if you got a 0% down mortgage.  Now Genworth Financial is offering the same insurance for only 3.1% if you have a credit score over 679.  (Source:  Globe & Mail)

For those with bad credit, it remains to be seen if mortgage insurance premiums will increase to compensate.

Lower Mortgage Insurance Rates

Competition among mortgage insurers is paying off. 

Insurers are now increasingly basing mortgage premiums on a new policy called "risk-based" pricing.  This means that your mortgage insurance fees can now be based on your credit score.  No longer will you be slapped with a flat insurance fee if you don’t have the required 20% down payment. 

Here’s an example:  Just weeks ago you would have paid almost 4% of your mortgage in insurance fees if you got a 0% down mortgage.  Now Genworth Financial is offering the same insurance for only 3.1% if you have a credit score over 679.  (Source:  Globe & Mail)

For those with bad credit, it remains to be seen if mortgage insurance premiums will increase to compensate.

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