class 9 PP: housing finance Flashcards
three sets of institutions composing the system of housing finance in Canada
Mortgage Originators
Mortgage Insurers
Suppliers of funding
Mortgage Originators
Financial Institutions
Non-regulated Finance Companies
where does mortgage origination go through usually?
through the broker market
Mortgage Insurers
CMHC
Genworth FinancialCanada
CanadaGuaranty
who dominates the Canadian residential mortgage market
banks
what proportion of mortgages are originated by lenders that are federally regulated by the Office of the Superintendent of Financial Institutions (OSFI)
About 80 per cent of mortgages
The minimum down payment to qualify for a residential mortgage for a property with a purchase price of $500,000 or less
5%
The minimum down payments to qualify for a residential mortgage with a purchase price of $500,000 to $999,999
5% on first $500,000
10% on remaining amount
The minimum down payments to qualify for a residential mortgage with a purchase price of $1,000,000 or more
20%
Mortgage loan insurance
protects the mortgage lender in case the borrower is unable to make his payments
when is mortgage loan insurance required?
when down payment is less than 20% of the purchase
when is mortgage loan insurance not available?
the purchase price is $1 million or more
the loan does not meet the mortgage insurance company’s standards
what is the mortgage loan insurance premiums range ?
from 0.6% to 4.50% of the amount of the mortgage
depending on the amount of the down payment
where can premiums based on the amount of your mortgage loan be obtained from?
Canada Mortgage and
Housing Corporation (CMHC) Genworth
Canada Guarantee Mortgage Insurance Company
where are mortgage loan insurance premiums added?
either added to the mortgage loan or paid up front
