Mortgage insurance is typically mandatory for homebuyers without 20% equity.
Putting down 10% on the average $350,152 home, for example, means you’ll cough up a $6,302 insurance premium (given fully documented income and decent credit). Since insurance premiums are tacked on to your mortgage, that adds up to $9,000+ if you amortize it over 25 years.
Of course, you can avoid insurance altogether by plopping down 20% or more. The challenge is, only a minority of buyers has that sort of equity.
According to the latest data from Will Dunning, Chief Economist of CAAMP, less than four in 10 buyers have 20% down payments.
Click here for more details from CanadianMortgageTrends.com.