Don't have enough for a large down payment? You can still enjoy the comfort of home ownership. Insured mortgages can help people with enough cash flow to manage the debt load of home ownership but who find it difficult to save for a downpayment. TD Canada Trust offers an insured mortgage option through the Canada Mortgage and Housing Corporation (CMHC)and Genworth Financial Canada (Genworth).
CMHC or Genworth may insure a mortgage for up to 95% of the lending value of the house. Therefore, purchasers only need a 5% downpayment.
Eligible borrowers include anyone who buys a home in Canada intending to occupy it as his/her principal
residence.
Purchasers can use up to 32% of their gross family income for payments of mortgage principal and
interest, property taxes and heating. A buyer's total debt load (including
consumer loans, etc.) cannot exceed 40% of the gross family income.
People who insure a mortgage loan with CMHC or Genworth pay an application fee and a premium. The application
fee ($75 - $235) covers the costs incurred by the insurer to review the application. The premium is based
on the loan amount.
| Cost:
| Typical premiums range between 1.00% to 3.35% of the mortgage loan amount and can be added to the principal amount of the mortgage.
|
| Loan Amount:
| Up to 95% of the lending value of the house.
|
| Mortgage Term:
| To be set by the lending institution. |
| Max. House Price:
| Varies by market
|
|
