Mr. Speaker, with regard to (a), 98,714 loans were insured by Canada Mortgage and Housing Corporation, CMHC, in 2013 for lenders where borrowers were classified by the originating lending institution as first-time homebuyers. As mortgage loan insurance protects lenders against losses in the event of borrower default, the lender is the client and is the purchaser of the insurance. Most lenders pass on the cost of the insurance to the borrower.
With regard to (b), the average amount insured for first-time homebuyers in 2013 was $240,078.
With regard to (c), the median amount insured for first-time homebuyers in 2013 was $223,200.
With regard to (d), the average cost of insurance for first-time homebuyers in 2013 was $6,102.
With regard to (e), the median cost of insurance for first-time homebuyers in 2013 was $5,669.
With regard to (f), if rates announced on February 28, 2014, had been in effect on January 1, 2013, the average cost of insurance would have been $7,017 and the median cost of insurance would have been $6,519.
As announced on February 28, 2014, effective May 1, 2014, CMHC mortgage insurance premiums for homeowners and 1-4 unit rental properties will increase by approximately 15% on average, for all loan-to-value ranges.
In 2013, the average CMHC insured loan at 95% loan-to-value was $248,000. Using these figures, the higher premium will result in an increase of approximately $5 to the monthly mortgage payment for the average Canadian homebuyer. This is not expected to have a material impact on the housing market.