CMHC's Five Per Cent Down
With as little as five per cent down, all home owners now have access to the Canada Mortgage and Housing Corporation's (CMHC) mortgage insurance. This means CMHC may insure the mortgage on your home (against default in payments) for up to 95 per cent of the lending value of the home. This helps make home ownership a reality for many Canadians who can afford monthly mortgage payments but would have trouble saving for a larger down payment. The program is open to both new and repeat home buyers who buy a home in Canada and occupy it as a principle residence. Maximum house prices apply to loans greater then 90 per cent of the value of the home.
The mortgage insurance premium is based on a sliding scale. The premiums can be added to the mortgage paid on a monthly basis.
Comparable mortgage insurance may also be offered through other financial services providers.
For more information, go to CMHC's web site at www.cmhc-schl.gc.ca and search for 'Mortgage Loan Insurance'.