Mortgage Insurance and Interest Rate Tiers Category: First Time Buyer, Did you know that there are three tiers for interest rates in Canada? Even more surprising, the best interest rates are saved for people who have insured mortgages, with less than 20% down. With government guarantees and little risk of losing money, lenders can offer mortgages at rock bottom rates. 3 Tiers: Insured, Insurable, & Uninsurable From our Home Buyers’ Mortgage Guide on Page 8, the Canadian mortgage industry used to be simpler with more uniform rates. However, since 2016, the government created rules and regulations for government guarantees for mortgages that are not insured, but are insure-able. An insured mortgage is where the borrower pays for mortgage insurance. Insurable mortgages are when a mortgage “can” be insured but the lenders pay the insurance instead of the client. Uninsurable mortgages cannot have any insurance. The chart below outlines the three interest rate tiers. When you do end up getting your own mortgage, we’ll be providing you a choice for best rates and best mortgage terms from one or more of the three tiers above. Here to help with any questions – please don’t hesitate to call or email 🙂 Warmest Regards, Eitan Pinsky Continue Reading: Read Article Home Buyers Plan and Tax Free Savings Account Category: First Time Buyer, oday I’d like to go over smart ways to save for your down payment using the RRSP Home Buyers Plan (HBP) and the new Tax Free First Home Savings Account (FHSA). The HBP and the FHSA were created to help first time home buyers save for their down payment. These are both excellent programs and by using […] Read Article Read Article Follow The Money - Who gets which transaction? Category: First Time Buyer, We get asked quite a bit about deposits and about the “money timeline.” In other words… our borrowers are interested in knowing when deposit moneys needs to change hands, who receives the deposit, and how it works in the grand scheme of the mortgage process. *Please remember that your deposit and down payment must be […] Read Article