WHAT IS A CMHC MORTGAGE?
The Canadian Mortgage and Housing Corporation (CMHC) is a federal Crown corporation whose mission is to enable Canadians to access affordable housing options. CMHC mortgage insurance allows homeowners to secure mortgages of up to 95% of the purchase price for a house or condominium not exceeding $1,000,000.00. CMHC mortgage insurance comes with a premium, which must be paid by the borrower over the course of the mortgage term. With a CMHC mortgage, if the purchase price of the house or condominium is under $500,000.00, then the borrower must put in a minimum down payment of 5%. If the house or condominium costs between $500,000.00 and $1,000,000.00, then the borrower must put 5% down for the first $500,000.00 and 10% down on the remaining balance. To qualify for CMHC mortgage insurance, the borrower must meet certain criteria to qualify. For further information about the qualifying criteria for CMHC mortgages, visit the CMHC website.
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About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.