The Canada Mortgage and Housing Corporation (CMHC) is a government-owned corporation that provides mortgage insurance, securitization, and affordable housing programs in Canada. It operates under the authority of the National Housing Act and is responsible for promoting and maintaining a healthy housing market in the country. CMHC’s main functions include providing mortgage loan insurance to lenders, facilitating the securitization of mortgage loans, and implementing various affordable housing initiatives. The corporation plays a crucial role in ensuring the stability and accessibility of housing options for Canadians.
The Canada Mortgage and Housing Corporation (CMHC) is a federal government agency responsible for providing mortgage loan insurance, housing policy, and programs to support affordable housing in Canada.
Mortgage loan insurance is a type of insurance that protects lenders against default on mortgage loans. It allows homebuyers to obtain a mortgage with a lower down payment, as the insurance covers the lender’s risk.
CMHC mortgage loan insurance helps homebuyers access mortgage financing with a down payment as low as 5% of the purchase price. The insurance premium is paid by the borrower and can be added to the mortgage loan amount.
CMHC mortgage loan insurance is available to homebuyers who meet certain criteria, including having a minimum down payment, a good credit history, and a maximum purchase price limit.
CMHC mortgage loan insurance allows homebuyers to access mortgage financing with a lower down payment, potentially making homeownership more affordable. It also provides lenders with protection against default, which can result in more favorable mortgage terms for borrowers.
The cost of CMHC mortgage loan insurance is based on a percentage of the mortgage loan amount and varies depending on the down payment amount and the loan-to-value ratio. CMHC provides an online calculator to estimate the insurance premium.
CMHC mortgage loan insurance is not transferable to a new property. If you sell your current home and purchase a new one, you will need to apply for new mortgage loan insurance for the new property.
CMHC mortgage loan insurance is primarily intended for owner-occupied properties. However, there are some programs available for multi-unit residential properties and rental housing.
You can contact CMHC directly through their website or by phone to get more information about their mortgage loan insurance programs and other housing-related services.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 4th April 2024.
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