Down Payment - The bigger your down payment, the smaller your mortgage loan, which means you’ll save thousands in interest charges over the length of your mortgage.
While high ratio mortgage insurance program does not help you save for the down payment, it sure eases your way to home ownership. High ratio mortgages must be insured through CMHC (Canada Mortgage and Housing Corporation) or GE (GE Capital Mortgage Insurance Canada).
The cost of the mortgage default insurance, commonly referred to as "mortgage loan insurance" is in the form of a premium. It can be paid in a single lump sum or it can be added to the mortgage and included in monthly payments.
Once you are ready to obtain a mortgage, it is a good idea to select a lender to get pre-approved for mortgage.
Pre-approval is a formal process and a mortgage pre-approval certificate is a valuable document with a written confirmation for a specific maximal amount of mortgage and fixed interest rate good for a specific period of time. Find out how you can get pre-approved for mortgage.
By preparing yourself and your finances before a property purchase, you can ensure a smooth finance process and can potentially save thousands on your loan. Start here by learning about mortgage options available and get familiar with mortgage terminology.