Residential Purchases

The most common type of a mortgages available to you in Canada is the residential mortgage to purchase your home. This type of mortgage is made available by the majority of Canadian financial institutions and tends to offer the lowest rates and most flexible terms. You may be eligible to mortgage a residence in Canada if you fall into one of the categories below:

1) First-Time Home-Buyer

2) Repeat Home Buyer

3) Purchaser Of A Secondary Residence

4) New Immigrant

The two types of residential mortgage that exist for residential purchasers are:

1) The Conventional Mortgage – Any mortgage in Canada where the amount financed is no higher than 80% of the value/purchase price of the home is considered conventional (and is not insured against default).

2) The High Ratio Mortgage – Any mortgage in Canada where the amount financed is greater than 80% of the value/purchase price. A high ratio mortgage can be financed up to 95% of the purchase price of the property but must be insured by CMHC, Genworth Financial or Canada Guarantee. The cost of the insurance is typically added to the mortgage amount but you have the option to pay it separately.

For more information about mortgaging your residential purchase, please email me directly at: paulhudson@riversidemortgage.ca