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.
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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?