May 29, 2012

CMHC Fees: Can I pay off the remaining downpayment requirement (the remainer of the 20% down) at anytime of the life of mortgage?

Question of the Week: “I require CMHC fees added onto the house I wish to purchase. Can I pay off the remaining downpayment requirement (the remainer of the 20% down) at anytime of the life of mortgage to complete my 20% down requirement?”

Zoocasa PROS featured answer: 

The CMHC premium payment is a one-time event. You pay it at the very beginning, so what you do afterwards is irrelevant with respect to CMHC. It’s also worth noting that the percentage used to calculate the CMHC premium amount varies as the loan-to-value drops below 90% and again at 85%, In other words, you may be able to reduce the CMHC premium with a 10% or 15% down payment, even if you can’t get the full 20%. Knowing where those breakpoints are may help you save, depending on your situation. Of course, discussing your options with a mortgage professional is probably a good idea.

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