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Maryse Trudel

Maryse Trudel

Mortgage Broker

Language(s):
French
English

mtrudel@planipret.com
(514) 712-7738

210 Boul. Jean-Leman, Suite 204
Candiac, QC
J5R 6E6

Save $2,000 with a $500 investment.

Did you know that making a 10% down payment instead of 5% saves you 0.75% on your CMHC (Genworth or Canada Guaranty) premium?   So be mindful of how much you put down on the purchase of your home!

Here is a simple example of a mistake that is made all too often: if you have the intention of making a $30,000 down payment (slightly less than 10%) on a purchase of $305,000, your insurance premium will be $9900 which is 3.60% of your mortgage. However, if you increase your down payment by only $500 and make a down payment of $30,500 (exactly 10% of the purchase price), your insurance premium drops to $6,600 (2.4% of the loan). Therefore, you’re saving $2,062.50 dollars by simply adding $500 to your down payment.

Often, the amount needed to reach the next insurance premium level is too high for the buyer’s budget. However, it is always a good idea to make this calculation in order to avoid making a costly mistake.

Below is the table of insurance premiums (CMHC, Genworth, Canada Guaranty) for the purpose of an owner-occupied purchase.

Down payment % of the purchase price • Insurance Premium on the Loan Amount.

Mise de fonds Prime d’assurance
5% 3.60%
10% 2.40%
15% 1.80%
20%* 1.25%
25% 0.75%
30% et plus 0.60%

*Normally, on a 20% down payment, there will be no insurance premium to pay. However, a bank may require that the loan be insured due to an increased risk present in the file, such as a property situated in a remote area, credit issues in the borrower’s file, an unstable revenue stream for the borrower, etc.

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RATES OF

2024-03-28 00:00:00

TERMS BANKS MORTGAGE PLANNERS
6 months Fixed 7.94% 7.55%
1 Year Fixed 7.89% 6.79%
2 Years Fixed 7.49% 6.14%
3 Years Fixed 7.14% 5.09%
4 Years Fixed 6.99% 4.94%
5 Years Fixed 6.84% 4.79%
5 years Variable 7.65% 6.25%
Refinance Fixed or variable 10.40% 5.09%
3 year closed Variable 8.60% 7.20%
7 Years Fixed 7.10% 4.94%
10 Years Fixed 7.49% 5.79%
HELOC 8.20% 7.70%

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