Acquiring a conventional mortgage for a home in Cobourg, Port Hope, Northumberland County or anywhere in Canada normally requires a down payment of at least 20% of the purchase price. When homebuyers have less than 20% for a down payment, Mortgage Default Insurance leaves a door open for potential Buyers to secure a mortgage for their home purchase. Mortgage Default Insurance, which is also known as mortgage insurance or default insurance, can help you achieve the dream of homeownership with as little as 5% down! Lenders rely on this default insurance to protect themselves from financial losses in case a mortgage loan is not repaid. Since lenders have this protection, they are able to offer loans with smaller down payments – provided credit and legal requirements are met. For potential homebuyers, this means access to homeownership sooner, at a competitive rate, and with a lower down payment! The mortgage default insurance is a one-time payment that is added to your loan amount; for example if you qualify for a 5% down payment, then today the default insurance premium would be 3.15% of the purchase price.
Want to know more about how mortgages work? Contact Northumberland County’s Mortgage Broker who knows the industry and loves to share the information with her clients – Carole Ann Bryant, Mortgage Broker from Dominion Lending Centres Alliance.