CHMC fees due to Condo Size

[DaveRhydderch]

I have a client who is re-financing a condo they own. The mortgage broker they are dealing with said he has to pay 1.25% CHMC fees due to the size of the condo (being less than 680 sq ft) even at 80% LTV.

Has anyone ever heard of this. The mortgage is being done through Scotia.

 

[RobMacdonald]

That would mean that the broker was unable to get an expception to the minimum square footage requirement. The minimum square footage requirment at Scotiabank is 720 sq feet, unless the property is in what is considered a major centre or marketable area. Where is the property? Is it an older building?

I`m not sure why he`s paying 1.25%. The insurance premius up to 80% ltv is 1.00%. With extended amortization it would be 1.20% or 1.40%.

There are several lenders that will consider less than 720 sq feet, so they might want to try elsewhere.

 

[DaveRhydderch]

Thanks for the reply Rob.

The building is in Calgary, and its new (2006). I sent him your response and information, as something seem off.

Thanks again.