High Ratio Fees
Also, If you are looking to purchase a property with less than 20% of the purchase price as a down payment, all banks require that the Mortgage be insured through either The Canadian Mortgage and Housing Corporation (CMHC), Genworth Financial Canada or Canada Guaranty. These institutions provide mortgage insurance to home buyers and have identical premiums of which are listed below.
|LTV Ratio||Premium rate|
|Up to 65%||0.60% (in special circumstances)|
|65.01%-75%||0.75% (in special circumstances)|
|75.01%-80%||1.25% (in special circumstances)|
|80.01% – 85%||1.8%|
|85.01% – 90%||2.40%|
|90.01% – 95%||3.60%|
|*LTV: loan to Value||**premium is non-refundable|
|Add 0.25% for each 5 year increase in added to amortization over 25 years|
Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment, with interest rates comparable to those with a 20% down payment!
To obtain mortgage loan insurance, lenders pay an insurance premium. Your lender will pass this cost on to you. Furthermore, 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.
For more information about mortgage insurance,
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