What Is Mortgage Insurance? And Why Do I Need It?

What Is Mortgage Insurance? And Why Do I Need It?

Mortgage insurance is one of those things that most first-time home buyers run into when buying a home. Unless you’re lucky enough to save up a 20% down payment you probably need to get mortgage insurance on your home.

So, what is mortgage insurance exactly? And why do you need it?

Mortgage insurance is a requirement for all homes with under 20% down payment (Some banks even require it for down payments of 20%+. But in those cases it’s the bank making that decision, it’s not actually mandatory).

Mortgage insurance helps protect the lender in case you default on your mortgage. It’s a way to provide stability to the housing market. The largest provider of mortgage insurance is the CMHC, a federally backed agency. This means that the federal government is essentially backing the Canadian housing market, and this adds a lot of stability for buyers, sellers and lenders.

First-Time Home Buyer? Boost Your Down Payment!

First-Time Home Buyer? Boost Your Down Payment!

Feel like it’s impossible to put together a down payment as first-time home buyer? Don’t despair. We’ve got some great tips to help you out.

With the average price of a home in Canada above $500,000 that puts a lot of pressure on first-time home buyers.

Putting together a 20% down payment means you need to scrape together $100,000 plus closing costs. That’s creates a huge barrier for many first-time home buyers.

Use these tips to help boost your down payment as a first-time home buyer.

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