CMHC Mortgage
Canada Mortgage and Housing Corporation insured loan; allows down payments as low as 5%.
Key Takeaways
- Start by grasping the core concepts and workflows
- Get the most up-to-date information directly from official channels
- Talk to qualified experts for personalized guidance
Overview
A CMHC mortgage is a loan insured by the Canada Mortgage and Housing Corporation (CMHC), a federal Crown corporation. CMHC insurance allows Canadian homebuyers to purchase a home with a down payment as low as 5% of the purchase price. This insurance protects lenders in case of default, enabling them to offer more favorable terms to buyers.
Key Features
- Down payment as low as 5%
- Mortgage default insurance required
- Maximum loan-to-value ratio: 95%
- Available for primary residences
- Insures the lender against default
Mortgage Insurance Premium
- Premium based on down payment amount
- 5% down: 4.0% premium
- 10% down: 3.1% premium
- 15% down: 2.8% premium
- 20%+ down: No insurance required
Related Glossary Terms
Frequently Asked Questions
This guide breaks down the essential ideas and real-world uses of this subject in real estate and finance.
No two scenarios are the same, so use this as a starting point. For personalized advice, consult a qualified professional.
Turn to official sources such as the IRS, CRA, HUD, and CFPB for the most accurate and up-to-date information.
This content is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for advice specific to your situation.