The following is a break down of the premiums depending on the loan to value ratio (LTV), for high-ratio mortgage loans offered for programs through both CMHC and Genworth Financial:
|Loan to Value High Ratios (LTV) ||Insurance Premiums |
|100% financing (Genworth only) with lender cashback incentives ||2.90% |
|90.1 - 95% financing ||2.75% |
|85.1 - 90% financing ||2.00% |
|80.1 - 85% financing ||1.75% |
|75.1 - 80% financing ||1.00% |
There are also programs available by the insurers that allow for the self-employed borrower unable to prove qualified income, to obatin mortgage financing under an Alt "A" program, who otherwise would not qualify under the traditional guidelines.
Ask one me for more details on the Alt "A" program. Extended amortizations of up to 35 years are also available to borrowers through the insurers at a slightly higher premium, which allows for greater affordability.
|Conventional Insured (LTV) ||Insurance Premiums |
|65.1-75% financing ||0.65% |
|65% or less financing ||0.50% |
Applicants should be careful to understand why a lender is insisting on insuring a transaction when the LTV is less than 75%, so that they are not being unnecessarily insured.
IMPORTANT NOTE: Do not forget to ask me how we can save you money if you are topping.