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.
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Another 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:
2 P. y$ @. w$ F0 W$ w9 O' PThe 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.
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  {; z, Q- d8 t5 s0 |* ^+ VQuestion 2: if I purchase the lot and apply for a mortagage for this lot purchase, does CMHC charge the insurance fee? Thanks.
: k1 i3 K8 [# i0 \' a$ w& ~  N6 c: KNormally, 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.  
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I 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.