CMHC 5 % Down Payment Program.

5 % downpaymentWith 5 % Down Payment from personal sources you could be eligible to purchase your home. All home buyers can get the mortgage insurance which facilitate them to be the home owner for the first time. There are few requirements though which you should satisfy to get benefit from this 5 % down payment program from Canada Mortgage and Housing Corporation (CMHC).



  • Mortgage Insurance for 95 %  is accessible to both the first time home buyer and repeat buyer.  Home buyers have the option to use money from personal source or from other sources such as loan or line of credit.
  • Buyers using the program can spend up to 39 percent of their gross monthly household income for mortgage payments, property taxes, and utility charges. There total debt loan should not exceed 44 percent of their gross monthly income.
  • Buyer using the program should qualify for 5 years fixed rate mortgage.
  • Insurance premiums on loans for 95 % of the lending value of the home where the five percent down payment comes from personal source will be 2.75 % of the mortgage loan.
  • Insurance premiums on loans for 95 % of the credit value of the home where the 5 % down is coming from other source will be 2.9 % and this premium would be added to the mortgage.
  • Buyers should prove at the time of application that they can cover the 1.5 % purchase price for closing cost.
  • If the min requirement is met by financial gift then those funds should be in borrowers account 15 days before making the purchase.
  • Those buyers who used this program to bought their home can withdraw only 80% of the home value for re-financing.
  • The 5 % down payment program is not available for non-owner occupied properties. These properties should have 20 % downpayment.
  • Government backed insured mortgages are not available for homes with a purchase price of $ 1 Million or more.
  • As a new mortgage rule from July 9, 2012, the maximum allowed amortization period for mortgages with less then 20 % downpayment is 25 years.