Posted on: 31-07-14 15:45:10
Hi CD friends,
I am in market currently exploring the possibilities of selling my existing house and buying a bigger house, in the process I shall be paying between 20%-30% as down payment towards my purchase of new home, can some CD friend guide me on the obligation of buying an insurance (CMHC, OR SIMILAR CORPORATION) who is financing my purchase of new house.
I am not quiet clear on the issue, I shall be buying my house under the self employed , category, (using stated income) to finance the new purchase.
Thanks for your time
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mor
Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.
as per my knowledge, if you do 20% and above down payment than you do not need to go for CMHC insurance.
rgds
CHMC is paid only when down payment is below 20 % . CHMC does not have any bearing on your method of getting mortgage approved ( Self employed or otherwise ) .
Hop your interest rate is below 3 % . Don;t forget to get the maximum amortization while having a flexibility of early payments without penalty .
Good luck with upsizing of your home.
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Growing Old Is Mandatory ..Growing UP is Optional
Quote:
Originally posted by peacock1
Hi CD friends,
I am in market currently exploring the possibilities of selling my existing house and buying a bigger house, in the process I shall be paying between 20%-30% as down payment towards my purchase of new home, can some CD friend guide me on the obligation of buying an insurance (CMHC, OR SIMILAR CORPORATION) who is financing my purchase of new house.
I am not quiet clear on the issue, I shall be buying my house under the self employed , category, (using stated income) to finance the new purchase.
Thanks for your time
Congratulations on upgrading your home.
In the last couple of years mortgage rules have changed significantly and it has been becoming very difficult for the self employed borrowers to get approved for mortgage as most of the lenders have done away with Stated Income program. Moreover, CMHC has also stopped insuring mortgages without proper verification of income for the self employed borrowers. Having said that, it does not mean that you will not get mortgage because there are two other default insurance institutions which still have programs for Sefl Employed Borrowers. However, you might have less choice in choosing lenders and product and still would have to pay for the mortgage default insurance even if you are putting 30% down payment.
Here are some links which might help you in understanding your situation and the insurance costs you may have to pay.
http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_024.cfm
http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/hopr/upload/CMHC_Self-Employed.pdf
http://www.genworth.ca/en/products/business-for-self-program.aspx
http://www.canadaguaranty.ca/products-at-a-glance/
http://www.canadaguaranty.ca/insurance-products/low-doc-advantage/
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
