Whether you are in the office or on-the-go, the new CMHC Mobile KIT provides quick and convenient access to tools and resources relevant to today’s busy mortgage professional. [...]]]> CMHC is pleased to introduce two new tools designed to provide you with flexible and convenient ways to access comprehensive CMHC information anytime, anywhere.

The CMHC Mobile Kit for Mortgage Professionals

Whether you are in the office or on-the-go, the new CMHC Mobile KIT provides quick and convenient access to tools and resources relevant to today’s busy mortgage professional. These tools and resources will help you stay informed and can easily be shared with your clients to help them make informed decisions.

Recognizing that you work in a fast paced, electronic and mobile work environment, the new CMHC Mobile KIT is a free application that can be easily downloaded to your mobile device and allows you to quickly access:

• Insurance product and premium information
• The latest news, including recent insurance announcements
• Calculators and tools (including The Mortgage Payment, Affordability and Premium Calculator)
• Your library of customized RESOURCE factsheets and CMHC housing guides to share
• Key CMHC contact information

The CMHC Mobile KIT is available 24/7 to mortgage professionals from across the country and can be downloaded to your Blackberry, Android or iPhone device at cmhc.ca/mobile.

The Premium Calculator

CMHC has launched its Premium Calculator, a new tool to support Canadian homebuyers. With this easy-to-use online calculator, potential homebuyers can quickly estimate mortgage insurance premiums allowing them to make better-informed home buying decisions. The Premium Calculator is the latest addition to CMHC’s suite of resources that support Canadian homebuyers.

The Premium Calculator helps estimate the CMHC Mortgage Loan Insurance premium payable when your clients are purchasing a home.  Simply enter the purchase price, down payment and the amortization period to calculate the applicable premium. The calculator is also available online through EveryThingYouNeed.ca and cmhc.ca.

For more than 65 years, CMHC has shared a wealth of knowledge, housing expertise, tools and guidance to help mortgage professionals stay informed and become trusted advisors to their clients.

If you’re like most Canadians, your home is probably the most important investment you’ll ever make. Whether

Whether you’re buying a home or refinancing your existing home, making the right decision now can help save you money and provide greater financial stability for your family in the [...]]]>

What You Should Think About When Financing Your Home

If you’re like most Canadians, your home is probably the most important investment you’ll ever make. Whether

Whether you’re buying a home or refinancing your existing home, making the right decision now can help save you money and provide greater financial stability for your family in the future.

you’re buying a home or refinancing your existing home, making the right decision now can help save you money and provide greater financial stability for your family in the future.

To help you make an informed decision, Canada Mortgage and Housing Corporation (CMHC) offers the following tips on what you should think about when financing a home:

• Calculate in advance how much home you can afford. Mortgage Professionals use a few variables to determine the maximum mortgage you can afford: your household income, your down payment and your debt payments including your new planned mortgage along with major related expenses such as property taxes and heating. If you want to do some calculations of your own, CMHC has created a very simple online Mortgage Affordability Calculator at www.cmhc-schl.gc.ca/en/co/buho/buho_007.cfm.
• Consider getting a smaller mortgage than the maximum amount you can afford. Your future financial picture may not be the same as it is today. By taking on a smaller mortgage than the maximum amount you can afford, you will gain the flexibility and peace of mind to manage your other obligations today and deal with any unforeseen events that might occur in the future.
• Evaluate the impact rising interest rates could have on your monthly payment. For many homeowners, a rise in interest rates could have a significant impact on their housing costs. For example, if you are renewing a mortgage of $250,000, an increase of just two per cent in the interest rate could cost you around $300 extra each month. Evaluating the impact of future interest rate increases today could help you avoid potential financial difficulties tomorrow.
• Become mortgage-free faster by reducing your amortization period. On a mortgage of $250,000, choosing a 25-year amortization instead of a 35-year amortization will increase your monthly payments by about $200, but will also save you around $90,000 in interest over the life of your mortgage, and make your family mortgage-free 10 years sooner. Choosing an accelerated payment option (equivalent to one extra payment per year), making lump sum payments or increasing your regular payment amount all contribute to reducing your amortization period. For example, making one extra payment per year on your 35 year mortgage will make you mortgage-free 6 years sooner.

For more information on any other aspect of owning, maintaining or buying a home, visit our website at www.cmhc.ca or call CMHC at 1-800-668-2642. For more than 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency and a source of objective, reliable housing expertise.

Congratulations! You’ve decided to begin your search for a new home, or perhaps you’ve already found the home of your dreams and are ready to make an offer. It’s [...]]]>

How to Choose a Mortgage that’s Right for You

Congratulations! You’ve decided to begin your search for a new home, or perhaps you’ve already found the home of your dreams and are ready to make an offer. It’s now time to consider your mortgage options. But with so many different choices available, how can you select the right kind of mortgage for your needs?

To help you make an informed decision, Canada Mortgage and Housing Corporation (CMHC) offers the following answers to some of the most common questions Canadians have about choosing a mortgage:

• What is the difference between conventional and high-ratio mortgages?
  A conventional mortgage is a mortgage loan up to a maximum of 80% of the lending value of the property. This means that the home buyer has made a down payment of at least 20% of the purchase price or market value of the home. If your down payment is less than 20 per cent of the purchase price, however, you will typically need a high-ratio mortgage. A high-ratio mortgage is a mortgage loan which is higher than 80% of the lending value of the property up to a maximum of 95%. High-ratio mortgages normally have to be insured (by CMHC, for example) against payment default.
• What are fixed, variable or adjustable interest rates?
  When you choose a mortgage, you have to decide whether you want the interest rate to be fixed, variable or adjustable. A fixed rate is locked-in for the entire term of the mortgage. With a variable rate, the payments remain the same each month, but the interest rate fluctuates based on market conditions. For adjustable rate mortgages, both the interest rate and the mortgage payments vary based on market conditions. Talk to your mortgage professional to find out which option is right for you, and be sure to evaluate the impact of an increasing interest rate on your monthly payment.
• Should I choose an open or closed mortgage?
  With a closed mortgage, you pay the same amount each month for the entire term of the mortgage. Some flexibility to repay principal through lump sum payments is allowed. Closed mortgages can be a good choice if you want a fixed payment schedule, and you don’t plan on moving or refinancing before the end of the term. An open mortgage allows you to make a lump sum payment at any time. This type of mortgage can be paid off prior to maturity without penalty. An open mortgage can be a good choice if you’re planning to sell your home in the near future, or if you want the flexibility to make large lump sum payments. An open mortgage generally carries a higher interest rate than a closed one.
• What about the term, amortization and payment schedule?
  The term is the length of time (usually from six months to 10 years) that the interest rate and other conditions of your mortgage will be in effect. Amortization is the period of time (such as 25 or 30 years) over which your entire mortgage will be repaid. Lastly, the payment schedule sets out how frequently you will make payments on your mortgage — usually either monthly, biweekly or weekly. Accelerated payments are also an option. These are available for weekly and bi-weekly payment schedules and are generally equivalent to one extra monthly payment per year. With accelerated payments the home owner is able to pay off his/her mortgage faster while decreasing the overall interest cost.

For more information or a free copy of CMHC’s Homebuying Step by Step guide, or for information on any other aspect of owning, maintaining or buying a home, visit our Web site at www.cmhc.ca or call CMHC at 1-800-668-2642. As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) has been a source of objective, reliable housing expertise for more than 60 years.