Mortgage Insurance: Alternatives to CMHC - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

SweetDoc · 06-29-2009, 01:17 PM

Other than AIG or GE, does anyone know of any other alternatives to CMHC? Specifically on a mobile home on a rented lot with a 5% down payment.

Thanks in advance.

MoneyGuy · 06-29-2009, 01:22 PM

Nope. CMHC, Genworth and AIG Insurance are your only choices.

Mike Oxlong · 06-29-2009, 01:23 PM

Non insured private money is your only other hope.
CMHC, Genworth, and AIG are the only 3 insurers in Canada right now.

SweetDoc · 06-29-2009, 01:27 PM

Quote:

Originally Posted by Mike Oxlong

Non insured private money is your only other hope.
CMHC, Genworth, and AIG are the only 3 insurers in Canada right now.

Can you briefly explain non-insured private money and how a person might go about this? How much more of a cost would it be?

Mike Oxlong · 06-29-2009, 01:47 PM

Basically you would just talk to a mortgage broker like myself and I could take your application and see if any private lenders would be interested in it.

To be honest though 5% down on a mobile home on a rented lot isn't overly appealing to any lender, as I am sure you have seen with your CMHC dealings.

Private money would be quite costly as well. Your interest rate to get this done if we found someone willing to do it would be quite high.

I can certainly see if anyone would be interested though if you want.

GreatWhiteEbola · 06-29-2009, 04:02 PM

Would 20% down avoid CMHC?

MoneyGuy · 06-29-2009, 04:27 PM

Quote:

Originally Posted by GreatWhiteEbola

Would 20% down avoid CMHC?

Yes.

Finner · 06-29-2009, 04:42 PM

Actually thats not correct. If he doesn't fall under certain restrictions of the CMHC (ie. certain distance from major urban centre, etc.) it doesn't matter how much he puts down, he may still have to pay an insurance premium.

onetwo_threefour · 06-29-2009, 05:43 PM

Home Trust or Equitable Trust or any other lenders that self-insure? As stated above you would likely need to talk to a broker, (or maybe even two or three) to find anyone willing to lend on the type of property you are talking about at 95%.

Now that I think about it, I think Home Trust has gotten away from anything over 80% LTV.

albertGQ · 06-29-2009, 06:40 PM

Quote:

Originally Posted by GreatWhiteEbola

Would 20% down avoid CMHC?

What about 25% down?

Mike Oxlong · 06-29-2009, 06:46 PM

Quote:

Originally Posted by onetwo_threefour

Home Trust or Equitable Trust or any other lenders that self-insure? As stated above you would likely need to talk to a broker, (or maybe even two or three) to find anyone willing to lend on the type of property you are talking about at 95%.

Now that I think about it, I think Home Trust has gotten away from anything over 80% LTV.

Home Trust still lends over 80% LTV. They are trying to turn into an "A" lender now though rather than only looking for "B" deals. I believe they insure every mortgage even if it is less than 80% LTV, in that case they just pay for the mortgage insurance rather than the client.

Mike Oxlong · 06-29-2009, 06:48 PM

Quote:

Originally Posted by Finner

Actually thats not correct. If he doesn't fall under certain restrictions of the CMHC (ie. certain distance from major urban centre, etc.) it doesn't matter how much he puts down, he may still have to pay an insurance premium.

Those are more restrictions of the lender not the insurer. A lender may require insurance on a deal that has 20% or more down if they don't feel secure with it such as your cetain distance from a major urban centre example.

The mortgage insurance protects the lender not the borrower.