CMHC has recently advised us that there will be a 6% PST charge on all Mortgage Default insurance premiums (CMHC/GE/Canada Guaranty) as of August 1/2017
Notice to Mortgage Brokers June 8, 2017
Re: Saskatchewan provincial sales tax to apply to mortgage loan insurance premiums and surcharges
CMHC will be required to collect 6% provincial sales tax (PST) on premiums and surcharges for full or partial loan advances made on or after August 1, 2017.
***This change is the result of the recently announced amendments to Saskatchewan’s provincial sales tax.**
Premiums in Manitoba, Ontario and Quebec are already subject to provincial sales tax.
The Saskatchewan PST will be payable on premiums paid for all mortgage loan insurance transactions. The provincial sales tax cannot be added to the loan amount.
What does this mean for YOUR Mortgage?
If your possession date is on or after August 1/2017 there will be a 6% PST charge on your CMHC premium
Minimum 5% downpayment $22,500.00
+CMHC premium $17,100.00 (4% surcharge/minimum 5% down)
=Total mortgage $444,600.00
*TOTAL PST required at lawyers office payable=$1026.00 (6% of the CMHC premium)
This PST cannot be financed as part of the mortgage and is only applicable on insured mortgages (CMHC/GE/Canada Guaranty)
Looking to purchase a home soon?
Having the mortgage approval in place and taking possession before AUGUST 1/2017 will save you this additional PST cost.
Getting a pre-approval in place today will LOCK the very best mortgage rates in place for you while you house hunt
I will be able to run your numbers and provide your affordability figures as soon as the application is submitted
Call me at 306.933.3386
Tammy Wandzura, Mortgage Broker AMP