PST added onto CMHC Premiums as of August 2017
If you were on the fence about buying a house, do it before PST is added onto CMHC!
Buying a home is one of the most important and exciting steps in your life…. Find the home you want now you need a mortgage. Deal with people who can offer you and your family the best options. Devin Cristo and Wes Will of Your Mortgage Now have many years of experience helping individuals and families in Saskatoon and the area by offering mortgages from a variety of lenders. Their latest article is about upcoming changes in August when PST added onto CMHC Premiums
PST added onto Mortgage Insurance Premiums as of 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 2017.
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.
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
An Example:
Purchase $450,000.00
Minimum 5% downpayment $22,500.00
=$427,500.00
+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 1st 2017 will save you this additional PST cost.
