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?
Correct Answer
D) 30 years
Section 5(1.1) of the Insurable Housing Loans Regulations allows a high-ratio insured mortgage to amortize over up to 30 years if any borrower is a first-time home buyer or the property is newly built. This home is newly built, so the maximum is 30 years even though the buyer is not a first-time buyer.
Why This Is the Correct Answer
This is correct because the home is newly built, which satisfies s. 5(1.1) of the Insurable Housing Loans Regulations on its own. The high-ratio insured mortgage may therefore be amortized over up to 30 years, even for a repeat buyer.
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A first-time home buyer is purchasing a resale home with 10% down. What is the maximum amortization period allowed for the insured mortgage?
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What is the standard maximum amortization period for an insured homeowner mortgage when no borrower is a first-time home buyer and the home is not newly built?