CMHC MORTGAGE LOAN INSURANCE
CMHC is the premier loaning mechanism for mortgage loans for those with less than 25% down payment. This guide provides a summary of fees, premiums, terms and conditions applicable to CMHC homeownership services. See real estate dictionary for term definitions throughout this document. This dictionary is located in Properties For Sale/Real Estate Info area of Homes.Online.
Insurance Premium
EXISTING AND NEW HOUSING
%of Loan
More than
Loan to Lending Value Ratio Single Advance One Advance
Up to and including 65% 0.50% 1.00%
Up to and including 75% 0.75% 1.25%
Up to and including 80% 1.25% 1.75%
Up to and including 85% 2.00% 2.50%
Up to and including 90% 2.50% 3.00%
Up to and including 95% 2.50% 3.00%
Underwriting Fee Per Application
EXISTING HOUSING
Basic:
$75 when Approved Lender provides an appraisal acceptable to CMHC. An appraisal is not necessary when loan to sales price ratio is less than 80% and borrower's equity is $10,000 or more. (For additional conditions and further information, contact your local CMHC office.)
-Remainder may be borrowed from other sources
*Minimum Term: six months
*Amortization: up to 40 years
*GDS:
-Single units-32% (35% for FHLI applications),
based on principal + interest + taxes + heat and, if applicable,
50% of condominium fees
-Homeowner applications, two to four units -
GDS does not apply
*TDS: 42%. Calculated as total principal and interest plus all other debts divided by the total gross income plus net income from units.
Full:
$235 when Approved Lender does not provide an appraisal and progress advance examinations.
NEW HOUSING
Basic:
$75 when Approved Lender provides an appraisal acceptable to CMHC and provides progress advance examinations.
Full:
$235 when Approved Lender does not provide an appraisal and progress advance examinations.
How to Apply
EXISTING HOUSING
Approved Lender provides CMHC with:
*Real Estate Listing or recent photo of property
*Photocopy of signed "Offer to Purchase"
*Underwriting fee
*CMHC Form 530 "Request - Certificate of Insurance" or acceptable Approved Lender Application form
*Premium (as the mortgage funds are advanced)
*Appraisal (optional)
*If applicable, list of intended property improvements
NEW HOUSING
Approved Lender provides CMHC with:
*Copies of architect's plans (preferably two copies), including plot plan
*Underwriting fee
*CMHC Form 530 "Request - Certificate of Insurance" or acceptable Approved Lender Application form
*Premium:
Owner-builder homes: due and payable to CMHC as the mortgage funds are advanced
Homes purchased from builder: due and payable to CMHC at the time of the advance
*Cost estimates/builder's quotes, if applicable
*List of changes included in transaction
*For homes purchased from builder, accepted agreement of purchase and sale. A sales brochure of the subject property or equivalent. For completed houses, a photograph or real estate listing is adequate.
Mortgage Term and Conditions
*Maximum Mortgage Loan:
-90% of the first $180,000
-80% of the balance of the lending value
*Minimum Borrower Equity:
-10% of the property value
(5% for First Home Loan Insurance applications)
-Remainder may be borrowed from other sources
*Minimum Term: six months
*Amortization: up to 40 years
*GDS:
-Single units-32% (35% for FHLI applications), based on principal +
interest + taxes + heat and, if applicable, 50% of condominium fees
-Homeowner applications, two to four units - GDS does not apply
*TDS: 42%. Calculated as total principal and interest plus all other debts divided by the total gross income plus net income from units.
Sample Calculation:
Loan Amount, Downpayment and Equity Requirements -
Owner-Occupied One to Four Unit Buildings.
Example: Total House Price - $220,000
First $180,000 at 90% = $162,000
Remaining $40,000 at 80% = $32,000
Maximum Loan $194,000
Minimum Downpayment $26,000
Minimum Equity Required $22,000
(balance of $4,000 may be borrowed from other sources)
First Home Loan Insurance
ELIGIBLE FIRST-TIME BUYERS NEED ONLY 5% DOWN
*Eligible Borrowers:
-Anyone buying or building a home in Canada as a principal residence.
-Anyone who has not owned a principal residence in Canada during the last five years.
-If there's more than one buyer involved, only one must satisfy both of these requirements.
-CMHC will, however, consider justifiable exceptions to the five year eligibility requirement under certain hardship situations. Consult your local CMHC office for complete details.
*Maximum House Prices:
-In greater Toronto and Vancouver: $250,000
-In other centres where average house
prices tend to be high and in northern
areas: $175,000
-Everywhere else in Canada: $125,000
*Maximum Loan Amount: 95% of lending value of house
*GDS: 35%
*TDS: 42%
*Premiums: 2.5% for a single advance
3.0% for multiple advances
| 
