This option is called a high-ratio mortgage and it requires you to purchase default insurance. Whether you choose a conventional or a high-ratio mortgage, one thing is almost always certain: the larger your down payment, the more you save in the long run. Want more information? Visit the Canada Customs and Revenue Agency Publication.
CMHC or Genworth Financial may insure a mortgage for up to 100% of the lending value of the house. Therefore, purchasers do not need a down payment. Eligible borrowers include anyone who buys a home in Canada intending to occupy it as their 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 GEMICO pay a premium. The premium is based on the down payment and loan amount. A list of the mortgage insurance premiums can be found here. Cost: Premiums can be paid up front or added to the principal amount of the mortgage. Loan Amount: Up to 0%of the lending value of the house. Mortgage Term: To be set by the lending institution. Max. House Price: Varies by market. Want more information? Visit the Canada Mortgage and Housing Corporation or Genworth Financial websites. For more information on obtaining a mortgage please complete the form below.