Five Per Cent Down Payment Program

With 5% down payment, all home buyers have access to mortgage insurance allowing them to buy a home, as long as they meet the standards of a 5 year fixed-rate mortgage.

Note:

• Buyers using this Program can consume 32% of their gross monthly household income for payments of principal interest property taxes and heating. Also note that total debt load cannot exceed 40% of monthly income.
• Insurance premiums will be 2.75-2.9% on the mortgage loan and yes, can be added to the mortgage.
• Borrowers will be required to demonstrate an ability to cover closing costs of at least 1.5% of the purchase price.
• If the proceeds are coming as part of a financial gift, this amount must be in the possession of the buyer for at least 15 days.
• Non-owner occupied properties are not eligible for the insurance and are therefore required a 20% down payment.

For more information call CMHC at 1-800-668-2642 or through www.cmhc.ca