Canada to Impose ‘Risk Fee’ on CMHC Mortgage Insurance

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Canada will impose a “risk fee” starting Jan. 1 on mortgage insurance provided by the country’s housing agency to compensate taxpayers for potential losses in the housing market.

Canada Mortgage & Housing Corp. said the fee to the government will be “3.25 percent of premiums written and 10 basis points on new portfolio insurance written,” according to a financial report today for the three months ended Sept. 30.