“Porting” your Default Insurance Fee

Canadian banks are required by law to insure “high ratio” mortgages against default. “High ratio” refers to mortgages with less than a twenty percent down payment. Default insurance is typically provided by companies such as Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty (CGI), or Genworth Canada. Insurers provide a safety net for banks by […]

CMHC Increasing Mortgage Premiums

Mortgage Premium Increases

For the third time in three years, Canada Mortgage and Housing Corporation (CMHC) will be raising its default insurance premiums. Effective March 17, 2017 premiums are increasing anywhere from 11 percent on a minimal down payment mortgage to as much as 225 percent on lower loan to value mortgages. The announcement was released on January […]

Mortgage “Stress Test” Tips

New Mortgage Rule Tips

The mortgage “stress test” rule is now in effect. Canadians applying for a default insured mortgage are required to qualify at the Bank of Canada’s five year posted interest rate (the benchmark qualifying rate) on all mortgage terms. The qualifying mortgage payment is based on this higher rate. This directly results in lower mortgage amounts. […]

New Mortgage Rules Coming to Canada Soon

New Qualifying Mortgage Rules

The Government of Canada announced new mortgage rules that will be coming into effect on October 17, 2016. The rules will directly impact those purchasing a home in Canada with less than a twenty percent down payment. Canadians applying for a default insured mortgage (high-ratio mortgage) will be required to qualify at the Bank of […]

What is Mortgage Default Insurance?

Default Insurance

Why do most lenders require mortgage default insurance for home buyers purchasing homes with less than a twenty percent down payment? Canadian banks and most lenders are required by law to insure “high ratio” mortgages against default. “High ratio” refers to mortgages with less than a twenty percent down payment. Default insurance is provided by […]