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Mortgage Insurance


What is Mortgage Insurance and do you need it?

Typically, lenders require Mortgage Insurance (also known as mortgage loan insurance) for loans made to anyone that wishes to purchase a home with less than 20% of the purchase price. The Canadian Bank Act prohibits most federally regulated lending institutions from providing mortgages without mortgage loan insurance for amounts that exceed 80% of the value of the home or purchases with less than 20% down payment.

Through your lender, Mortgage Insurance enables you to finance up to 100% of the purchase price of a home.

Mortgage Insurance may be a tool for you to get the loan value you require when one or more of the following scenarios fits your situation:

  • You are self-employed
  • You have saved less than a 20% down payment
  • Refinancing to pay off other high interest debt
  • You are a newcomer to Canada with permanent resident status
  • Purchasing of a property and you want to include the costs of the renovations in the mortgage.
  • A purchase ro refinance of a second home

Companies Offering Mortgage Insurance

Canada Mortgage and Housing Corporation - www.cmhc.ca
Mortgage Insurance offered by Canada Mortgage and Housing CorporationCanada Mortgage and Housing Corporation - As Canada’s national housing agency, CMHC is uniquely positioned to offer you a range of financing options to ensure you have access to a wide choice of quality, affordable housing.

Useful Tips

Why Use a REALTOR?
Selling Your Own Home
Glossary of Terms
Showing your Home
Land Transfer Tax
Mortgage Insurance
Title Insurance
Mortgage Concepts
Renting out your House
What Can you Afford?
Why use a Mortgage Broker

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