is an excerpt from the Canada Mortgage and Housing Corporation (CHMC)
web site under the topic of "Mortgage Loan Insurance":
February 23, 2004 - Home buyers will have greater choice in
what they can use for a down payment, thanks to the new options announced
today by Canada Mortgage and Housing Corporation (CHMC).
are normally required to have a minimum five per cent down payment
from their own resources to purchase a home. However, CMHC has expanded
eligible down payment sources to enable may Canadians to realize their
home ownership dream sooner than what would otherwise be possible.
new product, effective March 1 2004, the down payment can come from
any source such as, lender incentives and borrowed funds. However, borrowers
will still have to prove their ability to meet their debt requirements
in order to qualify for mortgage insurance.
new product, lenders will be able to offer Canadians a variety of mortgage
product offerings including mortgages with terms as low as six months
and fixed, adjustable and capped interest rate loans.
Canada's leading innovator in providing housing finance solutions, continues
to provide Canadians with greater access to affordable housing finance.