CMHC Insurance Fee Dilemma

[Nir]

Hi All,
A few friends are interested in purchasing Plexes with me. Some of them plan to live in one of the units.
My question is regarding the CMHC Insurance fee:
What happens if they live there for a year then leave? what if eventually they change their plan after closing and do not live there?
Is it the intention to live there that counts or is actually living there for the entire mortgage term required in order to benefit from the lower "owner occupied" CMHC fee?
THANKS.

 

[ChrisDavies]

QUOTE (investmart @ Sep 27 2009, 09:10 PM) Hi All,
A few friends are interested in purchasing Plexes with me. Some of them plan to live in one of the units.
My question is regarding the CMHC Insurance fee:
What happens if they live there for a year then leave? what if eventually they change their plan after closing and do not live there?
Is it the intention to live there that counts or is actually living there for the entire mortgage term required in order to benefit from the lower "owner occupied" CMHC fee?
THANKS.

It`s the intention, rather than any sort of fixed timeline. That said, at any point in the future they can change their mind and come back at you saying it wasn`t truly owner occupied.

 

[Nir]

Thanks Chris.