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In June CMHC announced big changes to the way they underwrite mortgage applications which include three significant changes which will be outlined below. Increase in Minimum Credit Score The increase…
Tag: mortgage insurance
When people talk about mortgage insurance, they’re talking about either mortgage default insurance or optional mortgage protection insurance.
Mortgage default insurance is mandatory if you want to buy a residential property with a down payment of less than 20% of the purchase price. Mortgage default insurance is offered through the CMHC and allows you to have a down payment as low as 5%. This type of insurance protects the mortgage lender if you default on your mortgage and there is a shortfall after the lender forecloses on the property.
Optional mortgage protection insurance is an optional product that can help protect the outstanding balance on your mortgage or your regular mortgage payments. If you lose your job, or get sick, or injured and are unable to make your regular monthly mortgage payments. Optional mortgage protection insurance can cover you and protect you.
Your mortgage broker from The Mortgage Force Team in Edmonton can go through all mortgage insurance options and discuss the pros and cons of each. Contact The Mortgage Force Team today.
Mortgage Insurance: What It Is and How It Works
For the vast majority of people, buying a home means getting a mortgage. Most of us don’t have pockets deep enough to pay cash for a home outright. That means…