How to apply for a loan?
To apply for one of the products provided by CMHC, customers will have to check their eligibility and collect all required documentation. As soon as they have that done, they will need to contact the company to apply. Also, they can apply via the company’s online portal.
Requirements
The company provides customers with different products and services, so different requirements exist. For example, to apply for mortgage insurance, customers must be over the age of majority and be Canadian citizens. Also, their credit score must be at least 600; the maximum allowed GDS ratio is 39%, and the maximum permitted TDS ratio is 44%; their home cost must be more than $1 million; they can't have an amortization period that is longer than 25 years. Moreover, CMHC insurance is required if they make a down payment of less than 20%. For example, the minimum down payment is 5% for homes under $500,000, and if the purchase price is $500,000 or more (but less than $1 million), the minimum down payment is 5% of the first $500,000 and 10% of the remaining amount.
Application details
As the company has several different products and services, different applications are required. Therefore, customers must ensure that their project meets the minimum requirements and that they have enough time as application time varies. Also, customers will need to create an online account even if they are a part of CMHC, and note that application verification can take several weeks, but they can check the status of their application. Moreover, they can’t change the initiative or program they are applying for after they have selected it on the “Proponent” page. As a result, if they have chosen the wrong program, they will have to apply once more. Finally, as soon as customers are done with the application, it will be stamped and locked, so if they need to make any changes after they apply, they will need to contact the company to have their file returned.