Posted on: 17-08-07 11:48:57
I looked up on CMHC website, the premium table mentions the following for 20% down. I believed that one does not need mortgage insurance with 20% down. Any thoughts from real estate & mortgage experts on CD.
http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
With 20% down, Up to and including 80%
Single Advance Premium(% of Loan)1.00%
Does any one has the latest revision of CMHC Mortgage Loan Insurance Premiums Table?
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4z4z
Quote:
Originally posted by 4z4z
I looked up on CMHC website, the premium table mentions the following for 20% down. I believed that one does not need mortgage insurance with 20% down. Any thoughts from real estate & mortgage experts on CD.
http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
With 20% down, Up to and including 80%
Single Advance Premium(% of Loan)1.00%
Does any one has the latest revision of CMHC Mortgage Loan Insurance Premiums Table?
More than 99.99% of the time, the bank would not require the mortgage to be insured for default if the borrower is paying 20% down payment for the house he/she is buying.
However, in certain cases, where the bank is not fully satisfied by the credit and or income strength of the borrower, it may ask for the mortgage to be insured for default even if the borrower is paying 20% or even 25% of the down payment. CMHC or GENWORTH would then insure the mortgage for default and charge the premium.
I have not seen any such case so far.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
