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| | CMHC
Portability Features: | |
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| | If
No Top-Up is Required | |
| | A
homeowner sells his/her current home for $150,000 and currently has an outstanding
mortgage balance of $130,000 . The same homeowner purchases a new home for $150,000,
(or more, but requires no additional mortgage funds), then the remaining balance
and amortization of the original mortgage can be ported to the new property without
an additional premium charge. The only CMHC charge would be the $165 administrative
fee. Premium charged for a new mortgage: 2.0% X $130,000 = $2,600 (plus $165 administrative
fee)
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In this situation by taking advantage of the portability feature the homebuyer
will have saved $2,600 in CMHC premiums.**
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Special conditions apply to the portability product | |
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| | If
a Top-Up is Required | |
| | A
homeowner sells his/her current home for $150,000 and currently has an outstanding
mortgage balance of $130,000 . The same homeowner purchases a new home for $180,000
but requires an additional $30,000 of mortgage funds to finance the new property.
In this situation the homeowner can port the existing $130,000 mortgage without
an additional premium charge and just pay the premium on the additional $30,000
of required funds. The premium charged on the additional funds would be 4.5% of
the topped-up portion.
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| | Premium
charged for a topped up ported mortgage:
4.25% X $30,000 = $1,275 (plus $165
administrative fee)
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| | Premium
charged for a new mortgage:
2.0% X $160,000 = $3,200 (plus $165 admin.
fee)
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| | In
this situation by taking advantage of the portability feature the homebuyer will
have saved $2,725 in CMHC premiums.**
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| | **
Special conditions apply to the portability product
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| | Try
Your Own Portability Scenario | |
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