How Does Mortgage Insurance Affect My Choices?
Mortgage insurance is a key player in the Canadian mortgage world, especially for those with down payments below 20%.
Key Points
Mortgage insurance protects the lender, not you, if you can't make your payments.
Lenders still have to check that you can afford your mortgage, even if you have mortgage insurance.
Your lender can get mortgage insurance from CMHC or a private company.
Lenders need to make sure the mortgage insurance company is financially stable.
Your lender should regularly check the mortgage insurance policy throughout your mortgage term.
Technical Research Verification
Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.
Related Questions
How do GDS and TDS ratios affect my refinancing options?
GDS (Gross Debt Service) and TDS (Total Debt Service) ratios are critical affordability indicators that financial institutions use to determine your eligibility for refinancing.
What is the Loan-to-Value (LTV) ratio, and how does it impact my ability to refinance?
The Loan-to-Value (LTV) ratio plays a critical role in the refinancing process.
How does OSFI's Guideline B-20 affect refinancing?
OSFI's Guideline B-20 establishes the benchmark for residential mortgage underwriting practices that federally regulated financial institutions (FRFIs) must adhere to.
What is a 'straight switch,' and how does it impact refinancing at renewal?
A "straight switch" refers to the process of transferring an existing uninsured mortgage to a new institution when it's up for renewal, without increasing the remaining amortization period or the loan amount.