Don't let a small downpayment keep you from your condo!
One of the biggest barriers to home ownership today, especially for first-time buyers, is the lack of a downpayment. It can be hard when starting out to save enough money after other expenses to make up a lump sum to put towards a home. That is where a CMHC (Canadian Mortgage and Housing Corporation) loan comes in.
In short, a CMHC mortgage is needed when a buyer has less than 20% downpayment on a new home. Essentially a CMHC mortgage is one that adds mortgage loan insurance to your payments (as those with less than 20% down are at a higher risk to default their mortgage). However, it can be key for those new to the market, or those with special circumstances, in buying a home.
In order to qualify for a CMHC mortgage, you must still have a minimum 5% downpayment. Any financial institution that arranges mortgages will be very familiar with CMHC mortgages, and will be able to help you qualify and understand all of the terms of such a mortgage.
Another requirement of a CMHC mortgage is that the builder is registered with a new home warranty program. Did you know that in Manitoba, new home warranty programs are still optional? Not all condos in the local area are not registered with a warranty program, so that should be a key question when house hunting. We are fully registered with the New Home Warranty Program of Manitoba. You can rest easy knowing that you can buy your condo with us, qualify for a CMHC mortgage (if that is what you need), and enjoy the peace of mind that comes with your worry-free new condo!