CMHC and High Ratio Mortgages
Contact our Residential Real Estate Lawyers at Meikle Osgood in Edmonton, AB, to discuss matters related to CMHC and High Ratio Mortgages.
If the mortgage loan for which you have been approved is insured by a mortgage insurer (which is different from Title Insurance - see below) (usually under the National Housing Act (Canada)), then if the mortgage to goes into default, and foreclosure proceedings result, you could be personally liable to the mortgage insurer for any deficiency should the value of the Property be less than the total amount of principal, interest and costs ultimately determined to be owing under the mortgage. Default would include failure to make the mortgage payments, house (fire) insurance, taxes and condominium payments. You would remain personally liable to the mortgage insurer under the mortgage for so long as the mortgage remains in existence and until it has been repaid in full - even if the home was sold to someone else, provided the mortgage was not fully paid out. We recommend that you contact us to ascertain if liability can be avoided to the mortgage insurer or when considering selling the Property.
Meikle Osgood can help you with the following Residential Real Estate Law Services:
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CMHC and High Ratio Mortgages