Quote:
Originally Posted by GoinAllTheWay
"The federal government announced this month it will no longer insure mortgages with an amortization period greater than 35 years."
I don't understand this, in what way are they insuring my mortgage now? When I bought my place in 99, it was a 25 yr mortgage.
Woops! Guess I'll post my question in the other thread.
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When your downpayment is less than 20% (used to be 25%) you are required to get mortgage insurance. This insurance provided by CMHC, Genworth, or AIG protects the lender in case you default. You pay a fee for this insurance depending on the amount of the mortgage and how much of a downpayment you had. Most people just get it blended in with their mortgage payments.
Not to be confused with mortgage life insurance which protects you in case you die or are seriously injured.