What is CMHC?

CMHC is the Canadian Mortgage and Housing Corporation and they provide mortgage loan insurance for home buyers with less than 20% down payment. The insurance is mandatory by law and is put in place to protect the mortgage lender against default. Basically, it is an insurance premium charged to borrower to ensure that if the payments are not made, the lender can get their money back. Borrowers pay a premium of their mortgage amount which is rolled into the mortgage. CMHC, Genworth and Canada Guaranty are Canada's 3 mortgage loan insurance providers. Genworth and CG have not yet announced any premium increases. If you would like more information... Call me today!