Mortgage Question

[brianscott]

I am looking at buying/ building a house in the next year or so, and am looking at all the costs involved.
I have a question about CMHC Insurance.

I will have a 5% down payment so i will need CHMC Insurance. calculating the cost i am looking at a 7500$ fee

My question is when is this fee paid?

Upfront along with the down payment?
Once I take posession?
or can it be added to the monthly mortgage payments?

Thanks guys,

Brian

[WCTHEMI]

If I recall correctly it would be added to your mortgage, but that might depend on your bank.

[Spidey]

It will be calculated over the amortization of your mortgage. So, if your CMHC fees are 7,500 over a 25 year mortgage, then your monthly CMHC deduction will be $25/month. If you sell in the meantime your fee payments stop.

[Dr. Phil A]

It is added to your mortgage. At one time that fee would take the mortgage over 100% of the purchase price. If you can come up with another 5 grand to add to your downpayment that $7500 shrinks considerably. Since your first couple of years is mostly interest payments you pay for that fee for a long time.

[Kanonfodder]

Ask Jamie...without question he is the MAIN reason I am in my own condo today...

[Jamie]

Originally Posted by brianscott

I am looking at buying/ building a house in the next year or so, and am looking at all the costs involved.
I have a question about CMHC Insurance.

I will have a 5% down payment so i will need CHMC Insurance. calculating the cost i am looking at a 7500$ fee

My question is when is this fee paid?

Upfront along with the down payment?
Once I take posession?
or can it be added to the monthly mortgage payments?

Thanks guys,

Brian

Thanks Kanon. Glad it worked out for you. And more than happy to help.

Brian. Your CMHC fee will be rolled into your MRTG. Basicly, it will eat up your 5% down payment. However, it is "Extra" and you only need to come up with 5% of your purchase price.
Please feel free to ask any other questions.

Jamie

[sigma1]

THE Treasury Branch used to do conventional mortgages with 20 percent down. Borrow the extra 15 percent from private sources and avoid that fee altogether. You have to pay a 7500 fee for borrowing an additional 22500 thats a 33 percent penalty that you are paying plus the mortgage interest on top of that. Do your own math don't let the bankers and mortgage brokers do it for you for they always miss a few things in there favor of course.

[SBE2]

As mentioned, it goes on your mortgage. Avoid it if possible, borrow from lower interest rate source if possible. You have negotiated price a bit, then throw $7500 dollars away, it sucks but it's what happens, it basically gets you nothing. My two cents...

[eastcoast]

I have known people to get a line of credit and use that toward the downpayment,now I think it's 25% for no cmhc fee, maybe you should look into it.