What you need to know about CMHC-insured mortgages
In Canada, home purchases with a down payment of less than 20 per cent require something called mortgage default insurance. It’s a special type of insurance that protects lenders in the event the borrower stops making payments, resulting in a default on their mortgage loan. The largest mortgage insurer in Canada is the Canada Mortgage and Housing Corporation, commonly referred to as the CMHC. Here, we explore the basics of CMHC-backed mortgages to understand everything from who opts into them to why they’re important.
Original Article Source Credits: Montreal Gazette, https://montrealgazette.com/
Article Written By: Megan Martin
Original Article Posted on: Dec 22, 2020
Link to Original Article: https://montrealgazette.com/business/local-business/real-estate/what-you-need-to-know-about-cmhc-insured-mortgages