Quote:
Originally Posted by Husky
To me the issue comes to down lenders.
For example $100K purchase:
$90K bank
$10K government
What happens if someone goes to sell the house and only worth $90K? Who is first in line for proceeds? Bank or government? Same goes for a foreclosure sale - who is first as security?
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If someone buys a house and borrows $100K ($90K bank, $10K government as above) I would assume the bank would be first in line to get the balance owing, which I think is standard for any mortgage (not 100% sure though). So in this case the bank would get whatever is left owing on the mortgage when the house is sold, say $70K, and then CMHC would get their $10K, and the seller gets the rest (minus any fees etc).
This is all an assumption though as I don't think they've released any real details on the new program