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Buying a home is exciting — but it can also be challenging. With so many details to consider, how can you be confident you’re making the right decisions?

Mortgage Loan Insurance

Everything you need to open new doors

Buying a home is exciting — but it can also be challenging. With so many details to consider, how can you be confident you’re making the right decisions?

Canada Mortgage and Housing Corporation (CMHC) is here to help. Drawing on more than 65 years of experience, we offer you peace of mind, working with you to demystify all aspects of homebuying to help you enjoy an informed and assured homebuying and homeownership experience.

What is CMHC Mortgage Loan Insurance?

Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.

To obtain mortgage loan insurance, lenders pay an insurance premium http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm

Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

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