As I've mentioned in the past, Ms. Loonie and I bought our condo using a CMHC-insured, high-ratio mortgage. We've since paid off our CMHC premium, and are now making progress on the "real" mortgage principal. Our mortgage will be up for renewal in June 2009.
My question is this: is there a possibility that we will have to pay another CMHC premium when we renew our mortgage, if we have less than 20% equity at renewal?
I'm hoping that our initial premium covers us for the entire life of the mortgage, and not just for the initial term. I just haven't been able to find a definitive answer.
I'd appreciate any insight you can provide.
UPDATEI found the following via Red Flag Deals:
http://www.calgarybestmortgage.com/renew.htmlBased on this, it seems that we're insured for the entire life of the mortgage, based on our initial premium. Does that sound right?
Q: When switching my mortgage to a new lender, will I need to pay CMHC insurance fee again? Are there any expenses I need to be aware of?
When switching an insured mortgage, CMHC insurance number will simply be transfered to a new lender at no cost to you. Typically on a mortgage switch lenders will also cover your legal and appraisal expenses for you.