www.notapennydown.com CMHC Fees, what are they with Vancouver mortgage broker mark Fidgett. CMHC It’s amazing how many times I hear differnt references all for CMHC. The Canadian Mortgage & Housing Corporation SO what is CMHC And why do you need them. Well lets start by saying you don’t really need them the bank does. You see many moons ago it was illegal to provide a mortgage in canada without having at least 25% down well That’s since changed to 20% down But the bottom line is In Canada it’s illegal for a bank to provide a mortgage unless they have 20% down payment Of course we all know you can buy a home with less than 20% down But here’s the catch by law the mortgage MUST be insured with CMHC And that insurance is called High Ratio Insurance In a nutshell, it protects the bank in the event that you default. Now, The cost of the insurance depends on the amount you put down. The less you put down the higher the insurance As I mentioned earlier If you put 20% down or more it’s not required and you don’t need CMHC high ratio insurance If you put less than 20% Down You must pay the insurance and it’s added to the top of your mortgage For example if you’re buying a home for 0000 and you put 20% down or 100 thousand there no isurance added to your mortgage it’s simply the difference between the purchase price and what you put down so in this example the mortgage would be for 0 thousand Now if you purchase that same house for 500 thousand but put 10% down or …
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