Quote:
Originally Posted by sa226
I'm having some trouble with the Google and finding current information regarding CMHC's new regulations for insured mortgages.
As I understand it you cannot have 2 insured mortgages under your name.
So as little as a year ago I could be living in a 1 BR condo that I put 10% down on. But then decided that I wanted to upgrade yo something bigger. So I would have purchased a larger condo or house with 10% down and rented out my previously owned 1 BR.
If I understand it correctly, this is no longer possible?
Clarification on this is much appreciated.
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Hi sa226, just joined Calgarypuck and noticed your thread. Might be too late to assist but I thought I would respond anyways.
It is correct that NEW rule changes occured regarding 2nd homes. CMHC did make a change that prevents home owners getting a 2nd home with just 5% down. However, the rule does not prevent consumers from buying a 2nd home with 5%... it means that we have 2 other insurers to go to for your purchase.
You are still able to purchase a 2nd home with 5% down as long as it falls under the following categories:
1- it will be an owner occupied property
2- it is a 2nd home you are purchasing for yourself or a family member. There are some guidelines that apply so if you are not sure, please enquire.
Your above scenario would work since the new property will become an owner occupied property. CMHC will not do this scenario because the current property is insured, but Genworth and Canada Guaranty will.
Quote:
Originally Posted by gartman
i kind of have a similar question if anyone can answer
If someone has property that is not cmhc insured (i believe its 20% down?) can you obtain an additional property cmhc insured 5% down with new rules?
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Hi gartman, CMHC will look at a new purchase at 5% down payment since the current property was not insured (greater than 20% down payment). Note that if CMHC decides not to approve (which they can), there are the other 2 insurers that will look at this for sure.