Brief Mortgage History

In 1944, a law called the National Housing Act was passed to support government housing for low-income families and returning World War II veterans. Through a program called the Canada Mortgage and Housing Corporation (or CMHC), housing was offered to the two above mentioned groups for cheaper down payments and significantly lower mortgages. They eventually funded and built Canada’s urban renewal projects, which is a term for re-building on a land for moderate to high density land use. Today, CMHC’s main mission is to improve the housing quality and choices for all Canadian residents.


Here are three different mortgage types currently popular in use in Canada:


You qualify for this if you possess at least 20% of the purchase or appraised price available on hand for the down payment. Some lenders do require CMHC insurance depending on the location or type of the property.


If you possess 5%-19.99% of the purchase price, you qualify for the high-ratio. Insurance through GE Capital or CMHC is usually an absolute requirement in this case. In Canada, purchasing insurance along with the mortgage is a common solution if you don’t have at least 20% available for the down payment. Once the mortgage is set, the insurance is billed to you only once.

Open mortgages

Their interest rates are usually higher than the others and their time limit is usually up to about a year or so. However, it does allow you to pay off your mortgage in part or in its entirety at any time during the month without any incurring penalties.

bennett capital logoMortgage Architects Bennett Capital Group, also known as Mortgage Broker Kitchener, or just simply Mortgage Kitchener, because of its location in Kitchener have over 30 years of experiences dealing with the various banks. Thanks to their relationships with these various banks, they are able to help all of their clients to figure out the best solution for them depending on the product choices and their individual needs. Mortgage Broker Kitchener also assists clients who want to renovate their homes and need the funding for it.

If you’re a landlord, Mortgage Kitchener also invests with rental properties. They have successful partnerships with over 50 different institutions and will help you to fight hard to get yourself out of debt. If refinancing is what you are looking to do, they have a free refinancing package available to arm you with information that you can ask questions about during your consultation.

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