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Jeanne Said:

Why would a investigator from a mortgage insurance come to our door asking questions about our loan?

We Answered:

Checking for Fraud and the possibility of Taking your current home to pay off your old mortgage

Lois Said:

Is it a bad idea to get CMHC mortgage insurance when buying a house?

We Answered:

No, you don't have to put 20% down. But if you don't you need mortgage insurance - either from CMHC or another company to borrow from any major lender in Canada. There is a sliding percentage, highest with 5% down and reducing to nothing at 20% down. This is not a matter of his choice he is unlikely to get a mortgage without it.

It has nothing to do with his credit or subsequent housing purchases. What happens in October is that CMHC will no long insure 40 year mortgages or ones with less than 5% down. The other mortgage insurers have followed suit and some major banks have already implemented the policy.