Who pays for the CMHC Mortgage Loan Insurance?
Like any other kind of insurance, there are premiums to be paid. The lender typically passes on the cost of insurance to the borrower. The premiums can be paid up front in a lump sum or blended in with your mortgage loan payments. CMHC manages its mortgage insurance activities through sound business practices that ensure commercial viability evenin less favourable economic times. Consistent with the directions set by the office of the Superintendent of Financial Institutions for private sector insurers, CMHC maintains sufficient reserves to meet anticipated future claims. As of the end of 2004, CMHC was providing protection against borrower default on nearly $244 billion in mortgage loans outstanding.
