If you’re like most people, buying a home is probably one of the biggest investments you’ll ever make. That’s why it’s important to get as much information as possible about mortgages before you start shopping for a home. Mortgage Tree is here to provide you with everything you need to know about mortgages so that you can feel confident when making this important decision. We’ll explain, what factors to consider when choosing a mortgage, and how the CMHC plays a part in the process. So, whether you’re just starting out your home buying journey or are close to finalizing your purchase, be sure to check out our website for all the latest mortgage news and advice!
When does the CMHC come in to insure a mortgage?
The CMHC (Canadian Mortgage and Housing Corporation) is a government-sponsored organization that provides mortgage insurance to lenders. This insurance protects the lender if the borrower defaults on their loan. The CMHC does not lend money directly to borrowers; instead, they work with approved lenders to provide this insurance.
CMHC insurance, is for borrowers who have a down payment less than 20% of the purchase price of their home. So, if your down payment is less than 20%, you will need to get mortgage default insurance in Canada. Use the link provided to see how much the CMHC insurance will cost you. Just add in a few numbers and you will see the amount you are standing to pay:
https://mortgagetree.ca/mortgage-tools/mortgage-calculators/cmhc-calculator/
If you’re finding any difficulties in using Mortgage Tree’s CMHC Calculator, please contact us at info@mortgagetree.ca to let us know. If you would like any help in calculating your potential mortgage along with fees, possible penalties or terms, our brokers are ready to assist you.
How is the mortgage default insurance calculated?
The premium for your mortgage default insurance is calculated as a percentage of your loan amount and is based on several factors including the size of your down payment, and the type of home you are buying (i.e., single family, semi-detached, etc.), and the location of the property. The premium can range from 0.5% to 4.0% of the loan amount and is typically added to your mortgage balance so that you don’t have to pay it upfront.
If you are in the market for a new home, or are considering refinancing your current mortgage, it is important to understand how premiums for mortgage default insurance are calculated. Mortgage Tree can help you navigate this process and find the best solution for your needs.
Contact us today to get started! https://mortgagetree.ca/contact-mortgage-tree/
Or call -403-479-1134 Today! And speak with one of our Mortgage Tree Advisors.
Use our FREE CMHC calculator https://mortgagetree.ca/mortgage-tools/mortgage-calculators/cmhc-calculator/
Thank you for taking the time to visit our website and read our blog. We hope we have been able to answer a few questions.
Please contact us anytime we are here to help you!
Sincerely
The Mortgage Tree Team – “Your Key to Home Ownership”
https://mortgagetree.ca/contact-mortgage-tree/mortgage-team/