CMHC Mortgage Info

For most people, the hardest part of buying a home — especially a first home — is saving the necessary down payment. If you have less than 25% of the purchase price to put down, you will be required to purchase mortgage insurance through your lender. Mortgage insurance protects your lender against payment default.

By providing Mortgage Loan Insurance to lenders, CMHC enables you to finance up to 95% of the purchase price of a home. This means you can buy a property with as little as 5% down. So if the cost is $250,000, you would need a down payment of just $12,500!

How do you qualify?

Once the following conditions are satisfied, you are eligible for CMHC Mortgage Loan Insurance:

The home which is to be occupied as your principal residence is located in Canada.
You have a down payment of at least 5% of the purchase price of the property (7.5% for two-unit properties).
Your home-related expenses do not exceed 32% of your gross household income.
Your total monthly debt load does not exceed 40% of your gross monthly household income.
You are able to pay closing costs equivalent to at least 1.5% of the purchase price.
The minimum down payment of 5% must be from your own resources. Gift down payments from an immediate relative are acceptable.
Mortgage Insurance Rates - Effective July 14, 2003

5% Down 3.25%

10% Down 2 %

15% Down 1.75%

20% Down 1%

25% Down Insurance Not Required.

NB. All single family homes are eligible, now with NO price limit.

Two-unit homes, such as duplexes, require 7.5% down.

Other innovative CMHC products to meet homeowner needs
Purchase Plus Improvements — You’ve found your dream home… but it needs renovations. CMHC is there to help you with your project. You can include the cost of renovating in your mortgage up to 95% of the "as improved" value. Improvement costs exceeding the lesser of $10,000 or 10% of the "as improved" market value are subject to a 0.50% insurance premium surcharge.

Refinance — You can now refinance your principal residence up to 90% of market value. CMHC offers you flexible options to increase the amount of financing on your home.

Portability — Allows you to take advantage of your lender’s portability plan and save on the costs associated with a new mortgage insurance premium. CMHC’s premium structure allows repeat users of CMHC Mortgage Loan Insurance to save money by reducing or even eliminating the premium on a new loan.

For more info you can check out the CMHC Website at www.cmhc.ca or just give us a call or email.

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CMHC Mortgage Info For most people, the hardest part of buying a home — especially a first home — is saving the necessary down payment. If you have less than 25% of the purchase price to put down, you will be required to purchase mortgage insurance through your lender. Mortgage insurance protects your lender against payment default. By providing Mortgage Loan Insurance to lenders, CMHC enables you to finance up to 95% of the purchase price of a home. This means you can buy a property with as little as 5% down. So if the cost is $250,000, you would need a down payment of just $12,500! How do you qualify? Once the following conditions are satisfied, you are eligible for CMHC Mortgage Loan Insurance: The home which is to be occupied as your principal residence is located in Canada. You have a down payment of at least 5% of the purchase price of the property (7.5% for two-unit properties). Your home-related expenses do not exceed 32% of your gross household income. Your total monthly debt load does not exceed 40% of your gross monthly household income. You are able to pay closing costs equivalent to at least 1.5% of the purchase price. The minimum down payment of 5% must be from your own resources. Gift down payments from an immediate relative are acceptable. Mortgage Insurance Rates - Effective July 14, 2003 5% Down 3.25% 10% Down 2 % 15% Down 1.75% 20% Down 1% 25% Down Insurance Not Required. NB. All single family homes are eligible, now with NO price limit. Two-unit homes, such as duplexes, require 7.5% down. Other innovative CMHC products to meet homeowner needs Purchase Plus Improvements — You’ve found your dream home… but it needs renovations. CMHC is there to help you with your project. You can include the cost of renovating in your mortgage up to 95% of the "as improved" value. Improvement costs exceeding the lesser of $10,000 or 10% of the "as improved" market value are subject to a 0.50% insurance premium surcharge. Refinance — You can now refinance your principal residence up to 90% of market value. CMHC offers you flexible options to increase the amount of financing on your home. Portability — Allows you to take advantage of your lender’s portability plan and save on the costs associated with a new mortgage insurance premium. CMHC’s premium structure allows repeat users of CMHC Mortgage Loan Insurance to save money by reducing or even eliminating the premium on a new loan. For more info you can check out the CMHC Website at www.cmhc.ca or just give us a call or email. Return to News Article & Press Releases
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