Question on Completion mortgag

bryant

I have a question on Completion mortage. If I choose a builder to build the house and choose Completion mortgage option. I will pay 5% at beginning when starting the construction and will only require a mortgage upon closing. My question is whether CMHC will consider that I only pay 5% downpayment and charge the corresponding insurance fee, or CMHC will consider the ammount of downpayment when I require the mortgage upon closing? Thanks.
2 N8 C, B: B* p- J9 U9 d
/ b, u: v$ g- E8 nAnother question: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.

小狗妈

no, not at all

衣食住行

Question 1:
The mortgage company will calculate your downpayment percentage when they need to release the mortgage for your closing. If there is a CMHC insurance fee, the fee will be added to your final mortgage amount.
: p3 ~; ]/ f6 p, \1 U
5 h) r: m6 n8 F0 |- _$ zQuestion 2: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.
7 O- M7 k0 t) i0 a6 W9 W0 E- }Normally, the lending company will not lend money for you to buy a lot (land).

bryant

Thank you 衣食住行 and 小狗妈.  
3 V8 x0 A4 |, {. ~# x7 q! @" q) Q. e. k
+ l, O6 v, h% B$ m5 a3 v4 e( II have another question. If I choose Completion mortgage option, how much downpayment I need to pay at beginning when starting construction? I saw someone mentioned she only paid 5%. However, some builders told me that they need 20%. I want to check if that is negotiable? Thanks.

衣食住行

Yes, that is a negotiable item. Do you have a realtor? Ask your realtor to talk with the builder. Normally, 5% is good enough. But some builders need 10%. For those builder asking you 20%, their financial situation might not be that good.