Christine Buemann Mortgage Broker

  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 diff...

There can be a lot of confusion around the different types of insurance when purchasing home. Here is a quick overview:   Default insurance: This is provided through CMHC, Genworth or Canada Guaranty. It is required for purchases with less than 20% for down payment. It is a percentage based on several variables but mainly your down payment amount, down payment source and amortization. It is generally just added into your mortgage at origination.   Home insurance: Otherwise known as Homeowner’s insurance. It is a type of property insurance that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory. It is required for anyone who is obtaining a mortgage.   Life ...