I have a question on Completion mortage. If I choose a builder to build the house and choose Completion mortgage option. I will pay 5% at beginning when starting the construction and will only require a mortgage upon closing. My question is whether CMHC will consider that I only pay 5% downpayment and charge the corresponding insurance fee, or CMHC will consider the ammount of downpayment when I require the mortgage upon closing? Thanks. 4 x, z3 [" i! O % q! a) V ~* }5 d% zAnother question: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.
Question 1:% W" g6 B/ W( V0 W+ p1 o; H. s The mortgage company will calculate your downpayment percentage when they need to release the mortgage for your closing. If there is a CMHC insurance fee, the fee will be added to your final mortgage amount. ; c, s1 R6 J2 d! A4 ]# J' q/ _
. }' F2 b: m9 e$ b/ A- {9 [Question 2: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.' D* f+ V. P3 s Normally, the lending company will not lend money for you to buy a lot (land).
Thank you 衣食住行 and 小狗妈. 0 A6 g# A0 B2 i8 {% W4 c. t
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I have another question. If I choose Completion mortgage option, how much downpayment I need to pay at beginning when starting construction? I saw someone mentioned she only paid 5%. However, some builders told me that they need 20%. I want to check if that is negotiable? Thanks.
Yes, that is a negotiable item. Do you have a realtor? Ask your realtor to talk with the builder. Normally, 5% is good enough. But some builders need 10%. For those builder asking you 20%, their financial situation might not be that good.