CMHC’s Mortgage Loan Insurance Program

What is CMHC's Mortgage Loan Insurance Program?

If a buyer has less than 20 per cent of the value of a home that they want to purchase, then they can take advantage of this program.

Home buyers have access to mortgage insurance with as little as five per cent down payment (on the first $500,000 of the purchase price) from personal or other sources. The only condition is that they have to meet the standards for a five year fixed-rate mortgage.

Who is the CMHC Loan Insurance Program Available to?

CMHC mortgage insurance is available to both first-time and repeat home buyers. In the case of default, the mortgage insurance protects only the lending institution. It is usually added to the overall total loan amount to be amortized.

This program can help lower a buyer's overall cost of entry into the real estate market. In 2014, the Canadian Mortgage Housing Corporation insured over 308,000 housing units.

Reference: TREB President, Mark McLean