CMHC Fee, what is it with Vancouver mortgage broker

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Mark Fidgett
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It's amazing how many times I hear differnt references all for CMHC. The Canadian Mortgage & Housing Corporation SO what is CMHC And why do you need them. Well lets start
by saying you don't really need them the bank does. You see many moons ago it was illegal to provide a mortgage in canada
without having at least 25% down well That's since changed to 20% down But the bottom line is In Canada it's illegal for a bank to provide a mortgage unless they have 20% down payment Of course we all know you can buy a home with less than 20% down But here's the catch by law the mortgage MUST be insured with CMHC And that insurance is called High Ratio Insurance In a nutshell, it protects the bank in the event that you default.
Now, The cost of the insurance depends on the amount you put down. The less you put down the higher the insurance As I mentioned earlier If you put 20% down or more it's not required and you don't need CMHC high ratio insurance If you put less than 20% Down You must pay the insurance and it's added
to the top of your mortgage For example if you're buying a home
for $500,000 and you put 20% down or 100 thousand there no isurance added to your mortgage it's simply the difference between the purchase price and what you put down so in this example the mortgage would be for $400 thousand Now if you purchase that same house for 500 thousand but put 10% down or $50 thousand then the mortgage is the difference $450 thousand PLUS A 2% insurance fee or $9,000 So the actual mortgage now becomes $459 thousand Listen, there's a lot
more to mortgages that just great rates for the right advice at the right time 604-273-2002 or on line at as usual make it a great and we'll talk to you soon