To answer this question, I recently met with Jonathan Fung, a mortgage specialist with Vancity who was kind enough to discuss CMHC mortgage insurance with us.
What is CMHC Mortgage Insurance?
CMHC stands for Canada Mortgage and Housing Corporation, which is a Crown Corporation owned by the Federal Government. One of CMHC’s core functions via its Mortgage Insurance is to assist illegible buyers purchase a home in Canada with less than a 20% down payment.
Lenders and Financial Institutions view property purchases with less than a 20% down payment as higher risk of default (ie Borrowers not paying their mortgage). Without CMHC mortgage insurance, lenders typically will not lend to borrowers with less than a 20% down payment.
CMHC insurance is available and required anytime a purchaser wants to buy home in Canada with between a 5% and 20% down payment. CMHC Mortgage Insurance does not insure property purchaser, but rather the financial institution where the purchaser is borrowing the money. CMHC Mortgage Insurance insure the lender so that if the borrower doesn’t pay their mortgage, the lender gets their money back.
The Views – The newest addition to the spectacular Coal Harbour area of Downtown Vancouver, and possible one of the last.
The Coal Harbour area is Downtown Vancouver’s most prestigious neighbourhoods. Skirting the shore of Burrard Inlet, with Stanley Park to the west and the shops, restaurants and conveniences of the downtown core to the east.
It’s home to some of the swankiest condos in the entire country, with spectacular views of the North Shore Mountains and beyond. But with so few spots remaining to build on, the Views represents one of the last chances to buy or invest in this area.
Home sale activity has trended below historical averages for a full year in the Greater Vancouver housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,797 on the Multiple Listing Service® (MLS®) in February 2013. This represents a 29.4 per cent decrease compared to the 2,545 sales recorded in February 2012, and a 33 per cent increase compared to the 1,351 sales in January 2012.
Last month’s sales were the second lowest February total in the region since 2001 and 30.9 per cent Continue Reading…