CMHC Mortgage Insurance Question

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Feb 16th, 2020 5:12 pm

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Feb 15th, 2020 10:27 pm

minhdoan77 [OP]: Newbie; Aug 26, 2014; 20 posts; 3 upvotes; Toronto

Feb 15th, 2020 10:27 pm

CMHC Mortgage Insurance Question

hi all,

i dont know if this is the right forum to post question for this. if it is not, someone please move it to the right place.

we are looking to get a house some where in between 600k to 800k and have question about the morgate insurance. let say. a house we offer 700k. it means we need 140k for not to get insurance. however, if we only have 120k. that means we are shorted of 20k for the 20% down. if we decided to get insurance. does the insurance reach a point where we dont have to pay it anymore or does it last until we pay off the house. please some one help me out with my question.

Last edited by minhdoan77 on Feb 15th, 2020 10:40 pm, edited 1 time in total.

7 replies

Feb 15th, 2020 10:39 pm

Jucius Maximus: Deal Expert; Aug 18, 2005; 21124 posts; 5803 upvotes; Burlington-Hamilton

Feb 15th, 2020 10:39 pm

OP, for better answers, please change the thread title to "CMHC Mortgage Insurance Question" or similar.

People are going to come in here thinking you're being offered that scam mortgage insurance for disability, etc., offered by the bank.

Feb 15th, 2020 10:40 pm

minhdoan77 [OP]: Newbie; Aug 26, 2014; 20 posts; 3 upvotes; Toronto

Feb 15th, 2020 10:40 pm

ok thanks

Feb 16th, 2020 8:50 am

skeet50: Deal Fanatic; Jan 15, 2017; 5307 posts; 5418 upvotes; Ottawa

Feb 16th, 2020 8:50 am

You pay a one time premium for CMHC mortgage default insurance. In most cases, the premium amount is added to your mortgage. The mortgage default insurance will stay with your mortgage until the mortgage is paid off.

Feb 16th, 2020 9:42 am

minhdoan77 [OP]: Newbie; Aug 26, 2014; 20 posts; 3 upvotes; Toronto

Feb 16th, 2020 9:42 am

I am very confuse at these morgate thingy. Does it means that we have to pay morgate insurance until we pay off the house. Like 25 years later or does it last for only 5 years until we renew our morgate

Feb 16th, 2020 2:11 pm

ProductGuy: Deal Addict; Jan 1, 2017; 1817 posts; 1859 upvotes

Feb 16th, 2020 2:11 pm

minhdoan77 wrote: ↑ I am very confuse at these morgate thingy. Does it means that we have to pay morgate insurance until we pay off the house. Like 25 years later or does it last for only 5 years until we renew our morgate

It’s a lump sum added to your mortgage at the time of getting your first mortgage for a specific property. Eg mortgage is $500k and cmhc is $10k then total mortgage amount is $510k. Let’s say in 5 years is you repay $100k on your mortgage when you renew your mortgage will
Be $510k-$100k=$410k.

Feb 16th, 2020 4:16 pm

skeet50: Deal Fanatic; Jan 15, 2017; 5307 posts; 5418 upvotes; Ottawa

Feb 16th, 2020 4:16 pm

minhdoan77 wrote: ↑ I am very confuse at these morgate thingy. Does it means that we have to pay morgate insurance until we pay off the house. Like 25 years later or does it last for only 5 years until we renew our morgate

Yes, you pay it until you pay off the house, if it is added to your mortgage. You also have the option of paying the insurance premium yourself at closing instead of adding it to your mortgage. It is an insurance in case you default on your mortgage during the entire time that you have the mortgage. If it takes you 25 years to pay off your mortgage then you have it for 25 years. Remember though that it is a one time payment added to your mortgage balance.

Feb 16th, 2020 5:12 pm

minhdoan77 [OP]: Newbie; Aug 26, 2014; 20 posts; 3 upvotes; Toronto

Feb 16th, 2020 5:12 pm

Thanks all, after reading you guys post and talked to my brother. Everything is clear.

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