Quote:
Originally Posted by GP_Matt
I always thought that they only insured the first 20% and after that the banks trust that they have enough equity that they won't lose.
It struck me as wrong that on a $500k purchase you can put down 100k and they require no CMHC backing, yet if you are a little short (agreed to too many upgrades that raised the final price) and can only come up with 95k then they will charge you 5k to insure the loan.
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The premiums are based on the full mortgage amount, not the mortgage amount over 80%.
If you have CMHC insurance on it, your mortgage is insured for life.
Obviously, if you refinance conventionally, the insurance is gone