Canadian mortgage insurers are finding new ways to make home ownership affordable for more people. Mortgage insurance industry has come a long way since January 1946 when Canada Mortgage And Housing Corporation was established by the federal government of Canad to address post was housing shortage. In 1995 Genworth (GE company)entered the mortgage insurance market in Canada. Today its a multi-billion dollar marketplace with 2 major players, CMHC and Genworth. Other players may soon enter this segment of the insurance market. CMHC cover even small communities, where property values are not stable and private insurers don't like to go there. Both companies offer mostly similar products, new products are being launched on constant basis to stay competitive.
- Mortgage insurance for self employed, based on the tax assessment +15%
- New Canadian (permanent residents) can take advantage of all the regular products at the same premium rates.Interest
- only mortgages are insured for people who have really strong credit history. At least 10% down payment is needed and first 10 years can be interest only. Mortgage must be paid within 25 years total.
- 100% loan to value ratio mortgages can now be insured through CMHC or Genworth.
- Genworth even has a product for people who have experienced a credit setback.