Mortgage insurance helps protect lenders and mortgage investors from severe financial losses in case a loan is not repaid for any reason. This insurance benefits lenders and investors, but it helps homebuyers, too. Because lenders are protected by mortgage insurance, they are willing to offer loans with a very low down payment.
Without mortgage insurance, lenders usually require a down payment of at least 20%. If you don't have a 20% down payment, it can take a long time to save it. And while you're saving, the price of your dream home is likely to rise - perhaps faster than you can save.
That's why Canada Mortgage and Housing (CMHC) and GE Mortgage Insurance is for people who want a home now. When lenders are supported by CMHC and GE, they have extra security that gets passed along to you.
Your Insurer of Choice
For our business partners, our commitment to innovation will ensure even more flexibility, great efficiency and better risk management. We're working hard to improve your business. Building on our experience and drawing on our knowledge of the housing industry, we continue to set the stand for innovation in housing products, services and technology.
By protecting CMHC Approved Lenders against borrower default, CMHC Mortgage Loan Insurance creates the opportunity for homebuyers to realize their dreams of home ownership by purchasing dwellings with as little as 5% down.
A Full Range of Home Ownership Options
Homeowner mortgage loan insurance is available for residential buildings of one to four units, provided at least one unit is owner-occupied. This includes both high and low ratio financing for single-family homes and attached dwellings, manufactured homes, freehold or condominium units, homes on leasehold land, and on-reserve housing.
and...The Flexibility of Choice
Consumers can use CMHC insured financing to not only purchase a home but also for a variety of other purposes through our flexible Refinance program. Extensive renovations can be included in a "Purchase Plus Improvements" insured mortgage loan at the time of purchase or later through refinancing. Does your customer need funds for renovations to an existing home, for education or for other purposes? "Refinancing" using mortgage insurance could be the answer.
Mortgage insurance premiums vary according to the loan-to-value ratio, the type of mortgage (e.g. Variable Rate Mortgage) and whether the mortgage loan will be advanced all at once or in installments. Application processing fees depend upon the processing option chosen by the Approved Lender.