Money Matters: Avoid CMHC

CMHC is great for getting some people into high risk mortgages. Buyers who only have 5% down and would rather buy a house now than wait to have a bigger deposit. I'm all for this service which drivers the economy and my career.

For buyers who can wait, and put a little more money down, I suggest trying to save for that deposit as much as you can so you don't pay the CMHC fee. In some cases the fee can be upwards of $15000-20000 on your mortgage. Not only is it a fee added, it is amortized over the whole mortgage. This figure alone adds major interest to your house. Not to mention any other fees you might be adding to your mortgage, such as lawyer fees, land transfer tax and administration fees.

Buying a house is a privilege not a right. Companies like CMHC have allowed buying a house to become a right. They have been cashing in big time on your hard earned money, why not just save that much more and avoid it for the future generation. Your future self will thank you! lol.

This article was written by Ernie Arrizza

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Ernie Arrizza

Ernie Arrizza

Sales Representative
CENTURY 21 Kelleher Real Estate Inc., Brokerage*
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