A first-time homebuyer with a 10% down payment wants the longest amortization available on a CMHC-insured mortgage. Under CMHC Home Start, what is the maximum amortization period?
Correct Answer
B) 30 years
CMHC Home Start insures high-ratio mortgages for first-time homebuyers or buyers of newly built homes with a maximum amortization of 30 years. A standard insured purchase is limited to 25 years, so a first-time buyer can go beyond 25 years on an insured loan.
Why This Is the Correct Answer
CMHC's Home Start page states that the maximum amortization period is 30 years for eligible first-time homebuyers or buyers of newly built homes on high-ratio loans.
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