TET Mp3 Paper | Daily TET 2 Exam Part 2 Social Science Subject Mp3 Model Paper No 11 By Current Gujarat.
Mortgage loan insurance is typically required by lenders
when homebuyers make a down payment of less than 20 per cent of the
purchase p
rice. Mortgage loan insurance helps protect lenders against
mortgage default, and enables consumers to purchase homes with a minimum
down payment starting at five per cent — with interest rates comparable
to those with a 20 per cent down payment.
The minimum down payment requirement for mortgage loan
insurance depends on the purchase price of the home. For a purchase
price of $500,000 or less, the minimum down payment is five per cent.
When the purchase price is more than $500,000, the minimum down payment
is five per cent for the first $500,000 and 10 per cent for the
remaining portion. Mortgage loan insurance is available only for
properties with a purchase price of as-improved or renovated value less
than $1 million.
To obtain mortgage loan insurance — available from CMHC or a
private company — lenders pay an insurance premium. Usually, your
lender will pass this cost on to you. The premium payable is based on a
percentage of the home’s purchase price that is financed by a mortgage.
The premium can be paid in a single lump sum or it can be added to your
mortgage and included in your monthly payments.
Mortgage loan insurance should not be confused with
mortgage life insurance that guarantees your remaining mortgage at the
time of your death will not be a burden to your estate.
For CMHC-insured mortgage loans, the home must be located
in Canada and the maximum purchase price or as-improved property value
must be below $1 million.
CMHC’s mortgage loan insurance can be applied to many different types of housing and is available everywhere in Canada.
Financing options
A range of products and financing options are available
through your lender. For example, borrowers can move CMHC mortgage loan
insurance from an existing home to a new home and may be able to save
money by reducing or eliminating the premium on the financing of the new
home.
Newcomers to Canada with permanent resident status are
eligible under all CMHC mortgage loan insurance products, regardless of
how long they have been in Canada. As needed, CMHC will consider sources
other than a traditional credit history.
Borrowers may be eligible for a 10 per cent mortgage
insurance premium refund from CMHC for the purchase of an
energy-efficient home or to make energy-efficient improvements to an
existing home.
As products available from individual lenders may vary and
are subject to the lender’s eligibility rules, it is important for you
to discuss your financial situation with your mortgage professional.
To learn more about mortgage loan insurance, visit
www.cmhc.ca for a full list of requirements, calculators and worksheets,
along with information on all aspects of planning and managing your
mortgage.
Christina Haddad is the regional vice-president, Ontario at
Canada Mortgage and Housing Corp. E-mail
obc_communications_and_marketing@cmhc.ca.
Important: Please always Check and Confirm the above details with the official website and Advertisement / Notification.
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