Non-Conventional Mortgage

Non-Conventional Mortgages are considered high-ratio mortgages.  High ratio mortgages exceed 80% of the actual property value on the residential home and must have mortgage default insurance.  Mortgage default insurance in Canada is provided by CMHC (Canada Mortgage Housing Corporation), Genworth Financial Canada, and Canada Guaranty. 

With high-ratio mortgages, borrowers still have to have a down payment of at least 5%.

Mortgage default insurance provides insurance to the financial institution providing the funding on the mortgage, thus eliminating the risk of the loan in cases whereby individuals have less than 20% down on a residential property.  Mortgage default insurance premiums are paid for by the borrower, and are usually paid up front or added to the amount borrowed on the mortgage. 

Non-Conventional mortgages in Canada can be amortized over a 25 year period. 

Mortgage Default Insurance Providers

CMHC

Canada Mortgage and Housing Corporation is a government owned corporation providing a mortgage insurance program which allows buyers who have as little as a 5% down payment to obtain a mortgage.

Genworth Financial Canada

Genworth Financial Canada is a private default insurance provider.

Canada Guaranty

Canada Guaranty is a Canadian-owned private mortgage insurance company.

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April 27, 2017

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