Announcement that PST will be Added on CMCH Payments as of Aug 1st 2017

If you are thinking about buying a house don’t delay, as PST will be added on Default Mortgage Insurance Premiums from August 1st 2017!

PST will be added on CMCH
The recent announcement that PST will be added on CMHC premiums will affect all Saskatchewan home buyer effective August 1st 2017.
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. The Saskatchewan provincial sales tax is to apply to mortgage loan insurance premiums and surcharges
the insurers 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.
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.  It will be due & payable at the lawyers office.
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 Default Mortgage Insurance premium

An example of how PST will be added on Default Mortgage Insurance Premiums

Purchase $450,000.00
Minimum 5% downpayment $22,500.00
=$427,500.00
+Insurance 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 Insurance 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.

Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team . Their goal is to offer their valued mortgage clients a range of mortgage products, and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.

Current Interest Rates
5 Year Variable2.30%
1 Year Fixed2.44%
2 Year Fixed2.54%
3 Year Fixed2.79%
4 Year Fixed2.94%
5 Year Fixed (High Ratio)2.79%
5 year Fixed (Uninsurable)2.99%
7 Year Fixed3.59%
10 Year Fixed3.74%
Home Equity
Line of Credit
3.70%

Rates are subject to change without notice. For the most current rates, call (306) 244-4663.