If you’re purchasing a home with a down payment of under 20% of the purchase value, you’ll need mortgage loan insurance from the Canadian Mortgage and Housing Corporation (CMHC).
Mortgage insurance protects your lender in case you can’t make your mortgage payments. Your downpayment can be as little as 5% of the purchase price with mortgage insurance!
To get mortgage loan insurance, you’ll need a minimum down payment. The amount depends on the home’s purchase price:
- If the home costs $500,000 or less, you’ll need a minimum down payment of 5%.
- If the home costs more than $500,000, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remainder.
- If the home costs $1,000,000 or more, mortgage loan insurance is not available.
Questions on CMHC mortgage insurance and what it means for your next home purchase or refinance?
Give us a call at 705-805-9055!