CMHC Mortgage Loan Insurance
Lowering the costs of home ownership
From Homes Magazine
We invest a lot of time and energy in our families, our jobs and our homes - whether we rent or own. For 60 years, Canada Mortgage and Housing Corporation (CMHC) has worked to improve access to home ownership - for all Canadians, from coast to coast to coast. One example of this is CMHC Mortgage Loan Insurance which enables homebuyers to access mortgage financing with as little as 5% down, at a rate of interest typically reserved for borrowers with a 25% down payment or more.
In February, CMHC and First Line Mortgages announced a pilot program under which CMHC will insure mortgages for up to 30 years. Until now, 25 years has been the maximum amortization period permitted for CMHC-insured mortgages. The purpose of extended amortizations is to make it easier for Canadians to become homeowners. This 30-year amortization period complements the host of products and options CMHC already offers to Canadians who want to own their own home.
* Own your own home sooner. By using a wider range of sources for your down payment, if you have a proven track record of meeting your debt requirements and sufficient income to support mortgage loan payments, your lender may be able to provide you with CMHC’s Flex Down product. Sources for your down payment can include: borrowed funds, gifts and lender cash back incentives.
* Energy efficiency pays. Save 10% on your Mortgage Loan Insurance premium - if a CMHC-insured mortgage is used to buy an energy-efficient home, or to renovate a new or existing home with the intention of making it more energy efficient, you may also have the option of extending the amortization period for an additional 10 years.
* Found your dream home? Want to renovate it? With CMHC’s Purchase Plus Improvements, you can work with your lender to finance the cost of renovating by increasing your mortgage, up to 95% of the “as improved” value.
* CMHC’s Refinance product can open the door to a full range of financing options. Your lender may now be able to help you refinance your home for up to 90% of the market value to a maximum of $200,000 of additional funds. These funds can be used for any purpose other than
default management.
* Self-employed borrowers, through CMHC, have easier access to mortgage loan insurance than ever before, with no additional fees or premiums. This is because CMHC has improved its employment verification requirements for self-employed borrowers.
* When it comes to the purchase or refinancing of a second home, CMHC Mortgage Loan Insurance can also help you. This home can be located anywhere in Canada, provided it is not an investment property, and must be suitable for and available for year-round occupancy.
* Another relatively recent option in the mortgage field is an insured homeowner line of credit. With a secured line of credit, you can draw funds up to your insured credit limit at any time and without the need to reapply.
* With an insured homeowner line of credit, you can also make interest-only payments for a period of time, plus you have the flexibility to prepay without penalties. CMHC offers mortgage loan
insurance to help homebuyers obtain homeowner lines of credit. If you’re interested in exploring this option further, contact your lender to confirm availability and qualifying criteria.
Check with your lender for the qualifying criteria and availability of these innovative products within their product offerings.
For over 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency, and a source of objective, reliable housing expertise.
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Contact the Jeffrey Team for more information
