Geoff WIllis on the how and why of Canada Mortgage & Housing Corporation (CMHC)

Geoff (http://dandg.ca - Origin) explains what CHMC is all about in non-Einstein language: CMHC is a Crown corporation (government owned) that provides default insurance to the company lending you the money to buy property. Any deposit less than 20% of the purchase price of a new property is legally bound to apply for CMHC insurance. The premiums are then added to the mortgage payments. So if anything should happen to go wrong with your mortgage payments, you are covered by CMHC insurance to pick up the outstanding amount. There you have it!

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