the mac daddy of mortgages
If Sunova’s family of mortgages were royalty, the conventional mortgage would be king. With a conventional mortgage, you are required to make a minimum 20% down payment on the purchase price of the home or the appraised value, whichever is less. This can be a great benefit for a variety of reasons!
The first benefit is clear: By making a 20% down payment on your home, you can expect lower overall mortgage payments and, because of that, you will pay less interest when all is said and done. The key is equity, and with more money down you have greater equity to work with!
Another benefit of a conventional mortgage is that you are often not required to purchase mortgage insurance. Most ‘high ratio’ mortgages require insurance purchased through Canada Mortgage and Housing Corporation (CMHC) or a similar provider such as Genworth Financial. The cost of the insurance is added onto the total cost of the mortgage and is there to protect the financial institution from the possibility of the buyer defaulting on the loan.
Need a little clarification? Never fear! Just like all of our loans and mortgages, we will work with you to ensure that you have the right financing plan in place to meet your personal needs and financial situation. Fixed or variable rates, short or long-terms… you name it, we got it.