An Alberta buyer is purchasing an acreage property with a private water well and septic system. How do these features affect the buyer's ability to obtain CMHC-insured financing?
Correct Answer
C) CMHC may insure it, subject to satisfactory water potability tests, a septic inspection and minimum property standards
CMHC can insure properties with private wells and septic systems, but requires that these systems meet acceptable standards. The lender will typically require a water potability test, well flow test, and septic inspection. If the well or septic fails to meet standards, CMHC may decline the insurance, requiring the buyer to make a 20% down payment for conventional financing.
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An Alberta buyer is purchasing a rural acreage property. What additional lending challenge might they face compared to an urban purchase?
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An Alberta first-time buyer makes their first Home Buyers' Plan (HBP) withdrawal from their RRSP in 2026. What is the maximum withdrawal, and when must repayment begin?