Purchase or Refinance with Improvements
Facilitating the Financing of Smaller Scale Home Improvements
CMHC provides mortgage loan insurance for the purchase of a home and the cost of any immediate renovations, or for refinancing where funds are used to make improvements which increase the market value of the property.
Features
- Available for Purchase or Refinance Transactions
- Used when the loan includes improvement costs that are less than or equal to 10% of the property's value.
- One easy transaction - Once application is approved, Approved Lenders can advance funds as needed without requiring CMHC authorization
Benefits of CMHC's Purchase or Refinance with Improvements
- Ideal for small scale renovation projects financed in conjunction with a home purchase or a refinance transaction.
- Access to CMHC insured financing, and as a result, competitive interest rates.
- Available coast-to-coast-to-coast with no set maximum loan amount (individual lender maximums will apply)
Amortization Options
- Up to 35 years. Maximum debt servicing ratios of 35/42.
Borrower Qualification
- Minimum credit score of 600
Application Premiums
(Owner occupied properties) |
Surcharges |
| Loan to value Ratio |
Premium on Total Loan Amount |
Premium on Increase to Loan Amount for Portability |
Extended Amortization = Add 0.20% for every 5 years of amortization beyond the 25 year amortization period.
Blended Amortization = For portability 0.50%
CMHC Line of Credit/Interest Only Mortgages Repayment Option: 5 Years (5/20) 0.25% 10 Years (10/15) 0.50% Conversion from 5/20 to 10/15 0.35%
|
| Up to and Including 65% |
.50% |
.50% |
| Up to and Including 75% |
.65% |
2.25% |
| Up to and Including 80% |
1.00% |
2.75% |
| Up to and Including 85% |
1.75% |
3.50% |
| Up to and Including 90% |
2.00% |
4.25% |
| Up to and Including 95% Traditional Down Payment VS Non-Traditional Down payment |
2.75%
2.90% |
4.25%
4.25% |
