CMHC and Home Buyer

The housing market in GTA has started moving to become a buyer friendly one. There are so many buyers waiting for this opportunity. I know still the prices are not that affordable and difficult to come up with 20 % down payment to avoid CMHC insurance premium.
Oh...Let me explain you what does it mean by CMHC and how is it helpful to a home buyer.
CMHC stands for? Canadian Mortgage and Housing Corporation.

You might have heard that, you can buy your own dream home with 5 % downpayment and most importantly you are still eligible for banks preferred mortgage rate. Isn't it amazing ? Yes it is amazing our home land Canada always there for its people.

Yes, it is possible through the CMHC insurance. If you don't have 20 % down payment to buy your dream home in Canada, you can purchase insurance from CMHC and then bank lands you money and you can be in your dream home. 
How is works ? ..CMHC takes the buyer under it's huge umbrella. That way CMHC assures the financial institute (bank), that due to unavoidable circumstances if  buyer defaults, financial institute(Bank) is not at risk of loosing money. So the bank can easily land money to those buyers at LOW rate.

Refer table below for rates you need to pay.

Loan-to-Value	Premium on Total Loan		Premium on Increase to Loan Amount for Portability and Refinance
	Standard Premium	Self-Employed without 3rd Party Income Validation	Standard Premium	Self-Employed without 3rd Party Income Validation**
Up to and including 65%	0.50%	0.80%	0.50%	1.50%
Up to and including 75%	0.65%	1.00%	2.25%	2.60%
Up to and including 80%	1.00%	1.64%	2.75%	3.85%
Up to and including 85%	1.75%	2.90%	3.50%	5.50%
Up to and including 90%	2.00%	4.75%	4.25%*	7.00%*
Up to and including 95%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

On the other end those buyers who have 20 % or more toward down payment of the house price, they don't need to buy CMHC Insurance.  

Hope this article would have answered all the questions you had about CMHC Insurance.

Rate has been given in above table. If you have any questions regarding donot hasitate to call me or email me.
Best regards.

Ritesh Joshi