OTTAWA (REUTERS) - Canada's national housing agency said on Friday it will increase its mortgage loan insurance premiums for homeowners and some rental properties as of May 2014.

"The higher premiums reflect CMHC's higher capital targets,"Steven Mennill, CMHC's vice-president of insurance operations said in a news release.

"CMHC's capital holdings reduce Canadian taxpayers' exposure to the housing market and contribute to the long term stability of the financial system."