5% Down-payment programs
Owner occupied & Rental properties
upto 35 Year Amortization options
Choice of Insurers CMHC, Sagen & Canada Guaranty
The CMHC (Canada Mortgage and Housing Corporation) Residential Mortgage program is designed to help homebuyers secure financing with lower down payments. By providing mortgage insurance, CMHC mitigates lender risk, enabling borrowers to qualify for home loans more easily. This program primarily benefits first-time buyers and those with limited upfront capital, facilitating homeownership for Canadians.
The CMHC-insured mortgage program requires a minimum down payment based on the property’s purchase price:
5%: For properties up to $500,000
10%: For the portion of the purchase price between $500,000 and $999,999
20%: Required for properties priced at $1 million or more, as these are not eligible for CMHC insurance
For example, if you purchase a home for $600,000:
The first $500,000 requires a 5% down payment ($25,000).
The remaining $100,000 requires a 10% down payment ($10,000).
Total down payment: $35,000.
It is our job to get your lowest possible rate. Your rate qualification depends on certain factors, such as credit score and home equity as per regulations.
*Advertised rates may not be offered by this lender. Mortgage lender offers are aggregated by RateShop & its Brokerage Network subject to change without notice. Speak with our mortgage broker about APR and qualification requirements.
As of December 2024, the maximum purchase price for CMHC-insured mortgages remains capped at $999,999. Properties priced at $1 million or more do not qualify for CMHC insurance, necessitating a 20% down payment and uninsured financing options.
As of December 2024, the maximum purchase price for CMHC-insured mortgages remains capped at $999,999. Properties priced at $1 million or more do not qualify for CMHC insurance, necessitating a 20% down payment and uninsured financing options.
Example: For a $400,000 mortgage with a 10% down payment, the premium would be:
$400,000 × 3.10\% = $12,400
Down Payment (%) | Premium (% of Loan Amount) |
---|---|
Refinance | Allows an Equity Take-Out (ETO) for a variety of purposes including investment, renovations, asset enhancement, combining 1st & 2nd mortgages and debt consol- idation (excluding default management). |
Purchase plus Improvement | Helps clients purchase an eligible single family residential dwelling PLUS make tailored improvements immediately. |
New to Canada | his program helps qualified home buyers who have immigrated or relocated to Canada within the last 5 years to purchase a property |
Rental Investment | The program is intended for borrowers who would like to purchase an investment property, or who currently own an investment property and would like to refinance. |
Secondary Home | his program helps homeowners to finance a secondary home for owner-occupied purposes, or to be occupied by immediate family members |
Bridge Loan | This program provides interim financing used to “bridge” a mortgagor’s down payment, which is not available at the time of closing, but will be repaid from the proceeds of the sale of their existing property. |
Down Payment (%) | Premium (% of Loan Amount) |
---|---|
Refinance | Allows an Equity Take-Out (ETO) for a variety of purposes including investment, renovations, asset enhancement, combining 1st & 2nd mortgages and debt consol- idation (excluding default management). |
Purchase plus Improvement | Helps clients purchase an eligible single family residential dwelling PLUS make tailored improvements immediately. |
New to Canada | his program helps qualified home buyers who have immigrated or relocated to Canada within the last 5 years to purchase a property |
Rental Investment | The program is intended for borrowers who would like to purchase an investment property, or who currently own an investment property and would like to refinance. |
Secondary Home | his program helps homeowners to finance a secondary home for owner-occupied purposes, or to be occupied by immediate family members |
Bridge Loan | This program provides interim financing used to “bridge” a mortgagor’s down payment, which is not available at the time of closing, but will be repaid from the proceeds of the sale of their existing property. |
Example: For a $400,000 mortgage with a 10% down payment, the premium would be:
$400,000 × 3.10\% = $12,400
Mortgage insurance premiums are subject to provincial sales tax (PST) in Manitoba, Ontario, and Quebec:
Ontario: 8%
Manitoba: 7%
Quebec: 9%
These taxes must be paid at closing and cannot be rolled into the mortgage.
CMHC-insured mortgages have a maximum amortization period of 25 years. This shorter period helps reduce overall interest costs but results in slightly higher monthly payments compared to a 30-year amortization.
CMHC-insured mortgages are generally available for one owner-occupied property. Additional properties (such as investment properties) are not eligible for CMHC insurance.
For borrowers purchasing a home with a rental unit, CMHC allows up to 50% of rental income to be included in the borrower’s income calculations. This helps increase borrowing capacity. The rental unit must be legal, and the income must be supported by documentation (such as rental agreements).
CMHC insurance covers the following types of residential properties:
Single-family homes
Semi-detached homes
Townhouses
Condominiums
Multi-unit properties (up to 4 units, with one unit owner-occupied)
Properties must be located in Canada and meet CMHC’s minimum housing standards.
Switching or renewing a CMHC-insured mortgage is straightforward:
Check Renewal Options: Contact RateShop Mortgages to compare offers from multiple lenders.
Verify Eligibility: Ensure your mortgage balance and property value meet CMHC criteria.
Transfer Insurance: CMHC insurance is portable, so if you switch lenders, the existing insurance can be transferred.
Submit Documents: Provide proof of income, property details, and current mortgage statements.
Finalize the Switch: Your new lender will coordinate with CMHC to complete the transition without requiring a new premium (unless the loan amount increases).
By partnering with RateShop Mortgages, borrowers can access expert advice and competitive CMHC-insured mortgage solutions tailored to their needs.
RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
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