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: