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Originally Posted by Julio
Not dumb, but not the right question...the issue wasn't with him getting a mortgage...that was solid. The issue was that because he was putting down less than 25% he has by law to have mortgage insurance. Said insurance (from CMHC) was refused, therefore the deal crumbled. if the guy had the extra $ to bump his down payment past 25% and not worry about CMHC, the deal would be going through this week.
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It's only 20% down needed to avoid CMHC now. How much did he say he was putting down?
Was he a first time buyer? If not, he should have been at 20% or more anyway.
Something is not adding up. Did he have a subject to financing in the offer, and then tell you all of this as a reason for not removing subjects?
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Sorry WP...I meant that that is the length of the mortgage a lot of people take out, so that's the time frame that CMHC looks at the building still being around.
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I see, you meant the amortization period.