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CMHC fees 20 percent down

CherylCampbell

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I am purchasing my first rental property and applied for the mortgage just after June 1st and the cmhc fee changes. We has great credit hardly ant debt etc. when the deal came back from the underwriter our mortgage agent told us that cmhc was now charging fees on everything under 25percent as of June 1.
We agreed on the fees as we did not want to put another 5 percent down
I just found out that the rules have changed again and you only need 20 percent down again. I just asked my mortgage broker about this and she said she went back to the bank and they would not change it. So my question is we close July 15th what are our options if we have signed the commitment? Can we go somewhere else to get a mortgage or are we stuck? I would think the banks would have to change it because it is not a closed deal.
Any help would be appreciated.
 

Thomas Beyer

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The law states that banks cannot lend more than 80% without insurance. 20% down is pretty common. CMHC has its own underwriting rules. Unclear why you need CMHC ?
 

CherylCampbell

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The law states that banks cannot lend more than 80% without insurance. 20% down is pretty common. CMHC has its own underwriting rules. Unclear why you need CMHC ?
Well my mortgage agent has said that after June 1st the changed it to 25 percent and that was when we applied and they have now changed it back again but the bank won't change our deal.
If they won't change it can I just look else where?
 

Thomas Beyer

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Your mortgage agent is an idiot. Find another one. The only change announced recently was that home buyers with less than 10% down now face a higher CMHC premium.

Find another mortgage broker ASAP, for example Randy Jamieson ( or his associate Terry Caldie ) in Calgary, Dan Heon in Edmonton, Peter Kinch in Vancouver or Calum Ross and his team in Toronto.
 

CherylCampbell

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Your mortgage agent is an idiot. Find another one. The only change announced recently was that home buyers with less than 10% down now face a higher CMHC premium.

Find another mortgage broker ASAP, for example Randy Jamieson ( or his associate Terry Caldie ) in Calgary, Dan Heon in Edmonton, Peter Kinch in Vancouver or Calum Ross and his team in Toronto.
Thank you! And it does not matter about that I signed the mortgage documents?
 

Thomas Beyer

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Thank you! And it does not matter about that I signed the mortgage documents?
I see. Of course that changes things. Perhaps there are issues with your FICO score or other income or networth issues, best discussed privately, not in a public board. It is the combination of property and person that need to fit.
 

CherylCampbell

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Thank you! And it does not matter about that I signed the mortgage documents?
Thank You. Actually everything is perfect above and beyond perfect with us financially. I think I just need to find a new agent. We applied right after the June 1 st change and she said they were charging cmhc fees now unless we put down 25% she submitted it at 25 % we ran the numbers we wanted it at 20 % she said the cmhc fees. We agreed as the numbers still worked better. We then went on vacation for 10 days, I come back and I find out that a colleague of mine just got a mortgage with 20% down no cmhc fees and that is when I questioned my broker and she said they changed the policy but would not change my deal and take away the cmhc fees.
It is with first national so it just does not make sense. My question is can I just go to another mortgage agent as it does not close until July 15th. I guess I can call Callums office Monday, I wanted to give this person a chance.
Thank you for your time.
 

CherylCampbell

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Sorry I should say I just signed the commitment, I don't think that matters, correct? It does not close until July 15th.
 

Thomas Beyer

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Sorry I should say I just signed the commitment, I don't think that matters, correct? It does not close until July 15th.
Unclear what the contract states that you signed. Usually there are consequences if you break a contract. Check with agent or read contract to see what it states. I have no idea why you need CMHC and 25% down. Perhaps the rent was too low or your income ? I suspect the agent was misinformed / uneducated / pushy / lazy / new if income or rent were ok. Ask him/her how many other income properties he has mortgaged as a mortgage broker and why he/she thinks 25% needs CMHC in your case, and why he/she won't change it.
 
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