CMHC Insurance **

Ensuring Your Mortgage Payments

The CMHC is the Canada Mortgage and Housing Corporation, a government-owned agency that regulates mortgage loans and housing programs. The CMHC provides mortgage loan insurance, which protects the creditor in the event that you are no longer able to pay your mortgage, for whatever reason. This type of insurance is mandatory when purchasing a property with a down payment of less than 20%, regardless of credit score.

CMHC insurance is not to be confused with mortgage insurance, which protects you and your family in the event of death or disability. Click here to learn about mortgage insurance.

A major benefit of CMHC Insurance is that it will allow you to purchase a home sooner. Lenders require a 20% down payment on a property before they give a mortgage. Mortgage Insurance allows you to receive a mortgage with a down payment of only 5%. This protects both you and your lender. For this reason, Mortgage Insurance can also translate into lower interest rates.

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