There are several types of insurance, some compulsory and some optional:

QUESTIONS?

Who pays for the Mortgage Insurance?

Like any other kind of insurance, there are premiums to be paid. The lender typically passes on the cost of insurance to the borrower. The premiums can be paid up front in a lump sum or blended in with your mortgage loan payments.

Is there an upper limit to the price of a house I can buy?

No, CMHC removed its price ceiling limitations but individual lenders do limit amount you are able to borrow based on your ability to pay back.

How can I refinance my home to make some renovations?

If your lender refinances your loan using CMHC Mortgage Loan Insurance, you can increase the existing mortgage on your home up to 95% of its current value or as improved value. Refinanced funds may be used for any purpose you wish, except default management. There are some eligibility requirements; please consult with your lender or mortgage broker for all the details.

What can I use as my down payment on my new house?

A CMHC insured mortgage provides you with down payment flexibilities (own savings, inheritance, gifted from imidiate family member) - you can own your home with little or no down payment.

Additional sources of down payment are also available. Homebuyers with a proven track record can provide the 5% down payment from a variety of sources, including borrowed funds or lender incentives, provided the funds are at arm's length from and not tied to the purchase or sale of the property.

Please contact your agent/broker to confirm qualifying criteria.