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The National
Housing Act (NHA) of 1954 introduced mortgage insurance in Canada.
This Act authorized CMHC to operate a Mortgage Insurance Fund
which protects NHA Approved Lenders from losses resulting from
borrower default. The Act also provides the basic framework for
the operation of public mortgage loan insurance.
Mortgage Loan
Insurance is required when a mortgage loan is more than 75% of
the purchase price of a dwelling. Homebuyers with CMHC Mortgage
Loan Insurance can purchase a property with as little as 5% down.
It protects NHA Approved Lenders against loss due to borrower
default on the loan.
NHA Mortgage
Loan Insurance is available through NHA Approved Lenders (banks,
caisses populaires, credit unions, trust companies, and other
financial institutions). With CMHC Mortgage Loan Insurance, thousands
of Canadians are able to realize a dream of home ownership that
would not otherwise be possible.
Criteria
for NHA-insured Loans
Approved Lenders may provide NHA-insured mortgage loans for all
types of new and existing housing units (including manufactured
homes) and for a variety of purposes such as home ownership and
rental. The essential requirements are that :
- the housing
be intended for full-time rather than seasonal occupancy
- the housing
does or can reasonably conform to established construction standards;
and
- not more than
a reasonable portion of the borrower's (or project's) income
is required for mortgage repayment purposes, and other housing
related expenses.
Deposits
& Downpayments
Deposit is money offered at the time of acceptance of your offer
and is held in trust by the listing real estate Broker. This
money is forwarded to the lawyers on closing and is part of your
down payment.
The down payment
is the amount of cash in total that you are putting towards the
home. The balance of your downpayment is not required until closing
day.
Buyers can use as little as 5% down payment if they qualify for
the balance of the mortgage.
Moving
Assistance A-Z
We don't just sell houses we help people move.
Over the years we have met true professionals who, with their
professional manner and remarkable knowledge have managed to
make our job easier. Whether you are buying or selling a home,
our list of professionals can make your move a smooth one.
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Buyer's Agency Agreement