Mortgage Loan Insurance Products Analysis ### 📋 Eligible Entities - Primary Lenders: Banks, credit unions, and mortgage lending institutions - Mortgage Brokers: Licensed intermediaries arranging mortgages for clients - Financial Institutions: Registered lenders offering residential or multi-unit mortgages - Real Estate Developers: Building multi-unit residential properties - Homebuyers: Individual borrowers with down payments below 20% seeking mortgage insurance - Multi-unit Property Owners: Investors financing multi-unit residential buildings (typically 2-4 units) Note: Eligibility depends on the lender's relationship with CMHC and compliance with underwriting standards. --- ### 💰 Funding Details - Product Type: Insurance-based (not direct grants or loans) - Coverage: Protects lenders against borrower default - Down Payment Requirements: Available for down payments as low as 5% (high-ratio mortgages) - Insurance Premium: Borrower pays insurance costs (typically 1.6% to 4.00% of mortgage amount, depending on LTV ratio) - Maximum Mortgage Amount: Varies by property type and location; typically up to $1 million for standard properties - Repayability: Not a loan—mortgage insurance is a one-time premium rolled into the mortgage or paid upfront - Matching Ratio: No matching requirement; borrower covers insurance cost --- ### 🛠️ Approved Expenses This is an insurance product, not a direct funding program. The mortgage proceeds can finance: - Primary Residence Purchase: Owner-occupied single-family homes - Multi-Unit Residential Property: 2-4 unit buildings (duplexes, triplexes, fourplexes) - Condo Purchases: Owner-occupied or investment condominiums - Property Acquisition Costs: Purchase price of the property - Closing Costs: Legal fees, inspections, and appraisal fees (may be added to mortgage) - Renovations: Only if lender-approved and property value supports the mortgage Not Eligible: Commercial properties