Are you in the market for a mortgage but not sure about whether or not you should get, or need to get, CMHC mortgage insurance? Do you even know what CMHC Mortgage Insurance is?
Ashley Langford of the Denova Group and Brandon Ware of the WareInToronto Group explain what CMHC mortgage insurance is and give a sample of the current estimated costs would be (assuming a $450,000 mortgage amount).
If you were to purchase a home for (approximately) $500,000 and have a 10% deposit, your total mortgage amount would be $450,000. You would be required to get mortgage insurance, which would amount to approximately $10,800.
This additional $10,800 is amortized and paid in monthly instalments over the term of the mortgage and would amount to less than $20 per payment based on current interest rates. Ashley is quick to highlight that you have to pay the tax on the $10,800 on closing. You do not have to pay the $10,800 in a lump sum.
Ashley and her team at the Denova Group are some of our trusted mortgage advisors and we strongly encourage all our clients to seek the advice from industry professionals to ensure that they understand the costs and fees associated with mortgage financing.