CMHC is not the only option

 If you are putting less than 20% as your down payment in Canada, your mortgage must be "insured". This type of insurance is called default insurance and protects the lender should you default on your mortgage. It is percentage based and is generally added directly into your mortgage total.

Most Canadians have heard of CMHC, however did you know there are now two more alternatives for default insurance in Canada? Over the past few years, Genworth and Canada Guaranty have emerged as healthy competitors.

All three have very similar guidelines such as:
·         minimum credit scores
·         minimum debt ratios
·         minimum loan to value ratios
·         down payment source options
·         supporting document requirements

There are however district differences in several of their programs which may serve as an advantage. Here are a few:
·         Genworth’s New to Canada which allows you to use alternative credit sources if you do not have enough established credit
·         Genworth allows income from basement suites which are not “legal” suites, CMHC will not
·         CMHC’s stated income program only accepts borrowers who have been in business for less than 2 years, where Genworth and Canada Guaranty only allow self-employed applicants of longer than 2 years
·         CG and Genworth allow up to 20% of the value of a home to be used for their Purchase Plus Improvements program, where CMHC will only 10%

Using a Mortgage Broker means that you not only have access to a vast amount more lenders, but all 3 insurers as well.

http://www.christinebuemann.com/