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. - `; W7 K2 V7 o) D/ y# s/ U: V2 ?; Y* m4 |$ l
Another question: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.
Question 1: / R( |7 e' `( j6 N5 A+ XThe 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. # u# B5 B7 Y1 I4 f+ N( k
5 p3 p0 p0 P6 S5 F9 r; CQuestion 2: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.8 h0 R4 h* K! J. J* G 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. ! q% M* i4 _ g) Q& q6 H& h T! z9 w4 ?$ b3 R- @$ _/ L' n
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.