Home Purchase And Made Easier With Mortgage Insurance

Owning a home is a national dream not only in Canada but anywhere else in the world.
The biggest obstacle to buying a home in Canada was finding the down payment. By law banks can only lend you 75%, very recently this was increased to 80%. The average British Columbia home is $430,000.00 and 20% down payment will be $86,000.00
In Canada there are two major entities that provide this insurance coverage: Canada Mortgage and Housing Corporation, a Government of Canada Crown Corporation and Genworth Financial Mortgage Insurance Company of Canada, a public company.
Default insurance providers can insure your mortgage with a 20% down payment up to zero down payment. This does not come free though. You will have to pay a one-time premium of between 0.5% to 3.1% of the amount of the mortgage. Imagine 3.1% on a $430,000.00 mortgage is $13,330.00. The good news is that bank may blend this premium into your mortgage amount and spread the payment over 25 years or so.
By minimising your monthly mortgage payment, default mortgage insurance provider is helping you to purchase a home much sooner. Note that you can always reduce the amortization period at the end of the mortgage term and make a larger monthly payment if you can afford it later in the years.
It is possible though to buy a home with zero down payment by purchasing default mortgage insurance coverage for high ratio mortgages.