Frequently Asked Questions

TRENA NEID, EKC Mortgage Advisor

1.855.222.5789  e-mail

CMHC changes effective May 30, 2014

Effective May 30, 2014, CMHC will no longer be offering the following products:

  • Second Home/Vacation Property – CMHC will be limiting homeowner mortgage loan insurance to only one property (1-4 units) per borrower/co-borrower at any given time.
  • Self-Employed Without 3rd Party Income Validation - Self-employed Canadians can still qualify for CMHC insured financing through CMHC homeowner products with a validation of their income using traditional methods.

** PLEASE NOTE: these are not the only adjustments CMHC has in store. CMHC put the market on notice that “This is the first set of changes” we should expect, as a result of its internal insurance business review.

Please read the PDF linked below for more information.

What is a down payment and how much do we need?

A down payment is the amount of money needed up-front to buy a home. The larger the down payment, the easier the other expenses will be to manage. Once you're ready to put an offer on a property you'll need part of your down payment as a deposit, so remember to keep some funds easily available and accessible.

What is the difference between a Conventional versus CMHC mortgages?

If you can provide a down payment of 25% or more of the purchase price, you may qualify for what's called a Conventional Mortgage. If you have less than 25% to put down, you would apply for a High Ratio Mortgage. This type of mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC). Your down payment with a CMHC mortgage can be as low as 5%. You will have to pay an insurance premium between 1.25% to 3.75% of the total mortgage amount, depending on the size of the down payment. You can pay this premium in cash or, to make it more convenient, EKC can add it to your mortgage amount.

May I use my RRSP's toward my down payment?

As a first time buyer; you may be eligible for the government-approved RRSP Home Buyers' Plan. You and your eligible spouse may withdraw up to $25,000.00 each from your RRSP's using funds which have been in your RRSP's for at least 90 days. You don't have to pay income tax on the funds, as long as you repay the total amount to your RRSP over the next 15 years. Your re-payments have to start in the second calendar year after the withdrawal.

Local Decisions. Local Approvals. Local Money.

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