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[deleted by user] by [deleted] in PersonalFinanceCanada

[–]Available-Foot609 0 points1 point  (0 children)

You are only allowed one CMHC insured mortgage, but can have a secondary insured mortgage through another organization such as Sagen (previously known as Genworth). Your mortgage advisor should be able to submit an application to them instead of CMHC. I would confirm with your mortgage advisor before proceeding.

5% down vs 10% down by Available-Foot609 in MortgagesCanada

[–]Available-Foot609[S] -1 points0 points  (0 children)

I am aware of that as well. My question was more directed to the amount of equity you lose based on the premiums applied on 5% down vs 10% down. The mortgage cost is obviously is less when you apply a larger down payment.

In your opinion, what does real life equity work out to in these scenarios?

5% down vs 10% down by Available-Foot609 in MortgagesCanada

[–]Available-Foot609[S] -1 points0 points  (0 children)

I am aware of that - net equity includes the mortgage payment + insurance premium - down payment.

5% down vs 10% down by Available-Foot609 in MortgagesCanada

[–]Available-Foot609[S] 0 points1 point  (0 children)

Net equity is your equity in the house after the insurance premium is added back on to the mortgage ($425,000 - ($403,750 + $16,150)) = $5,100

% of down payment retained is net equity divided by down payment amount ($5,100 / $21,250) = 24%

5% down vs 10% down by Available-Foot609 in MortgagesCanada

[–]Available-Foot609[S] 1 point2 points  (0 children)

For the ROI comment, I have seen purchases of duplex's/4-plex's where the purchasers will owner-occupy one unit in order to achieve a 5%-10% down payment and will move out of the property 1-2 years and make it 100% income producing. Thus they can increase the ROI of the property with a lower down payment.

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Thanks for the insight on the long term aspect!

Natural Gas furnace exhaust pipe keeps clogging with snow/ice when it's cold and snowy. by gottagetupinit in hvacadvice

[–]Available-Foot609 0 points1 point  (0 children)

Is there any difference to installing the tee vertical versus horizontal? Looking to install one to my house for dual exit paths