Mortgage Insurance: Property Value and Purchase Price

mortgage insurance: Anyone who wants to buy a home in Canada without a down payment of at least 20 per cent of the purchase price is usually required to get mortgage loan insurance from the CMHC, which requires a smaller down payment of five per cent on a home worth up to 500,000.A 10-per-cent down payment is required for the portion of the price over 500,000, with 1 million being the maximum property value allowed, according to National Observer. The mortgage insurance comes with a premium, which the lender will then pass on to the person buying the home. It discriminates against entrepreneurs, as well, because they can't prove their income as well, so we're looking at our own policies to try and make sure that there is more equity in our mortgage insurance programs, he said. Borrowers need to satisfy lenders they will be able to make their mortgage payments, which usually means providing proof of employment and a few pay stubs. It can also be a barrier to those whose employment history has gaps for other reasons, such as having recently immigrated to Canada. But that can be tricky for people who just started their own business. (www.immigrantscanada.com). As reported in the news.