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.
The insurer’s (CMHC and Genworth) found out that the premiums they charge will be affected by the PST change late last week.
This means it will cost our homebuyer’s a few extra dollars to close out their mortgage due to the PST change. The amount will vary depending on mortgage amount and how much of a down payment they are putting down.
If there are clients already struggling to come up with the 5% down we do offer down payment loans in conjunction with their mortgage to make life a little easier.
As always, if you have any questions please do not hesitate to ask.
Mobile Mortgage Specialist |
Conexus Credit Union, 2119 8th Street East, Saskatoon, SK, S7H 0T8
Phone: 306-270-1190 | Cell: 306-270-1190
Chantelle.Stefaniuk@conexus.ca | www.conexus.ca