Purchase of a house, minimum down payment
Portability of the mortgage insurance premium.You want buy a property but you do not have the capital outlay required of 20% of the purchase price to obtain a conventional mortgage loan. No problem the mortgage lender will refer your file to a mortgage insurer. You will be charge with a mortgage insurance premium. The cost of that premium will be added to your mortgage loan amount.
A few years later you sell your house to buy a new property. Unfortunately again you do not have the 20 % capital outlay required for a conventional mortgage loan. The mortgage lender will again want a mortgage loan insurance. Good news, the insurance coverage obtained by the payment of the premium during the purchase of the first property can be transferred on the new loan even if this loan is obtained from a different financial institution. The only requirement being the respect of the remaining amortization period.
If a higher mortgage loan amount is required a new premium will be charged to you but only on the additional loan amount.
For more details contact your Hypotheca mortgage broker.