Many people would love to buy a home, but don’t have the 20% down payment needed for a conventional mortgage. But there’s good news. Homeownership may still be within your reach. That’s because you may be able to buy a home for as little as 5% down if you also buy mortgage default insurance.
What is mortgage default insurance?
Mortgage default insurance protects your lender if you default on the loan. If you default on your mortgage, your lender can start proceedings to sell or take over your property. The insurance covers your lender’s losses after the property sells.
How do I get mortgage default insurance?
Your financial institution will arrange this insurance for you through Canada Mortgage and Housing Corporation (CMHC). They pay the insurance premium directly to the mortgage insurer and add these costs to your mortgage principal. You pay this insurance back to the lender, with interest, as a part of your mortgage.
Speak with one of our North Peace Savings and Credit Union Advisors who will discuss the options available to you.
Get started today! Contact an NPSCU Financial Advisor at 1-877-787-0361