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Mortgage Insurance
August 15, 2022
6:30 pm
devonks
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August 15, 2022
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Hello All,
I along with my wife have already put the deal and it got accepted. My mortgage agent said that since I am residing in Canada less than a year, which is why the bank would charge us mortgage insurance even though we are putting 20% down 🙁

I have few questions:
Is she true about this?
Are there any alternatives we can do like life insurance instead of mortgage insurance?

Any feedback really appreciated!
Thank you in advance.

August 16, 2022
6:04 am
MattS
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January 11, 2020
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is the mortgage deal done and signed or you were accepted and approved only. As a new comer my #1 pc of advice is to stay away from canadas big 5 banks. try to deal with more personalized service from a credit union. the big 5 exist to enrich themselves generally and rarely want to customize a solution that suits you best

August 16, 2022
6:09 am
MattS
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MattS said
is the mortgage deal done and signed or you were accepted and approved only. As a new comer my #1 pc of advice is to stay away from canadas big 5 banks. try to deal with more personalized service from a credit union. the big 5 exist to enrich themselves generally and rarely want to customize a solution that suits you best  

They will almost never have the highest deposit rates and also almost never have the best mortgage deals avail to you either... Only been my experience with a couple of these institutions, maybe others have had a different experience

August 16, 2022
6:18 am
Norman1
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Are you sure you're putting 20% down and not borrowing more than 80% of the appraised value of the house?

If one agrees to buy for $750,000 and puts $150,000 down but the house is appraised for only $700,000, then one is borrowing

($750,000 - $150,000) / $700,000 = 0.8571 = 85.71%

of the value of the house and not 80%.

August 16, 2022
10:19 am
MattS
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Norman1 said
Are you sure you're putting 20% down and not borrowing more than 80% of the appraised value of the house?

If one agrees to buy for $750,000 and puts $150,000 down but the house is appraised for only $700,000, then one is borrowing

($750,000 - $150,000) / $700,000 = 0.8571 = 85.71%

of the value of the house and not 80%.  

Strong point Norman. I heard this from a realtor last Saturday exactly that. People agreed to something 3 mths ago but house values changed. It was up to the buyer to figure out where they were coming up with an extra 200k.. think of the chain reaction this creates. The sellers had already bought as their house was sold or so they thought. People are too used to houses fluctuate by 200k down in 90 days anymore

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