To help future homeowners, the Canadian Mortgage and Housing Corporation (CMHC) offers a variety of tools and calculators, including a mortgage loan insurance premium calculator.
But these types of calculators don’t always provide accurate information, explains MoneySense columnist Bruce Sellery. “A down payment of at least 20% of the purchase price should eliminate the need for mortgage loan insurance. [But] I tried both the CMHC and Genworth calculators with [a dramatic] example—a down payment that covered 80% of the purchase price—and it still showed that I would have to pay insurance of $300.”
Find out more about how the calculators work.
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