A first-time home buyer is purchasing a resale home with 10% down. What is the maximum amortization period allowed for the insured mortgage?
Correct Answer
A) 30 years
Section 5(1.1) of the Insurable Housing Loans Regulations allows a high-ratio insured mortgage to be amortized over more than 25 years, up to 30 years, if any borrower is a first-time home buyer or the home is newly built. This buyer is a first-time home buyer, so the maximum is 30 years even though the home is a resale.
Why This Is the Correct Answer
This is correct because the buyer is a first-time home buyer with a high-ratio insured mortgage, which is exactly the case s. 5(1.1) of the Insurable Housing Loans Regulations covers. The loan may be amortized over up to 30 years, whether the home is new or resale.
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A first-time home buyer in BC is getting a CMHC-insured mortgage to buy a resale condo. What is the maximum amortization period available to them?
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A buyer who is not a first-time home buyer is purchasing a newly built home with 10% down. What is the maximum amortization period allowed for the insured mortgage?