a) Conventional - A loan for up to 75% of the purchase price of a property
b) High Ratio - A loan for up to 95% of the purchase price of a property
3. CMHC/GE Capital Insurance.
High ratio mortgages must be insured through CMHC (Canada Mortgage & Housing Corporation) or GE Capital Insurance. CMHC/GE guarantees the risk of lending to home buyers who need a high ratio mortgage. An insurance premium is paid by the borrower on behalf of the lender. The insurance premium that is paid to CMHC/GE is to protect the lender in the event that the mortgage is not paid. This is not life, disability, or job loss insurance.
The insurance premium is calculated as a percentage of the mortgage amount, depending on the loan-to-value ratio, and may be added to the principal amount of the mortgage. The premiums are as follows:
Loan to value
Premium
75.0 - 80.0%
1.00%*
80.1 - 85.0%
1.75%*
85.1 - 90.0%
2.00%*
90.1 - 95.0 %
2.75%*
*premiums are subject
to change without notice
4. Closing Costs: Learn about closing costs now to avoid any surprise costs. Click Here.
5. Save Money On Your Mortgage Tips: Learn some helpful tips for saving money on your mortgage. Click Here.
