Home / Cottage Buyers’ Road Map Part 3 : Mortgage Default Insurance

Posted by Andrew Bulloch on Monday, July 6th, 2015 at 12:00pm.

Are you planning to purchase a property with less than a 20% down payment?

If yes, you require mortgage default insurance which generally adds 0.6% to 3.85% to the cost of the mortgage
depending on the total amount borrowed.

Mortgage default insurance enables you to purchase a home with a minimum down payment of 5% (10% for multi-unit
dwellings) with interest rates comparable to those of a conventional mortgage.

Major providers of mortgage default insurance include Canada Mortgage and Housing Corporation (CMHC), Genworth
Canada, and Canada Guaranty Mortgage Insurance Company.

Read the whole Home / Cottage Buyers’ Road Map Series:

Home / Cottage Buyers’ Road Map Part 1 : Assess Financial Readiness
Home / Cottage Buyers’ Road Map Part 2 : Consider Mortgage Options

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