NEW!! Interest only Mortgages

Interest Only Homeownership Product

CMHC's interest only homeowner mortgage insurance product is designed to allow lenders to provide borrowers who have a strong history of responsibly managing their credit, with flexibility in repaying their mortgage loan. Similar to CMHC's existing Line of Credit product that has been in the marketplace since 2003, qualified borrowers will be able to pay interest only for the first 10 years of their mortgage. Following the interest only period, principal and interest payments will begin and will be sufficient to ensure the balance is paid in full within 25 years of the date the mortgage was originally initiated.

This feature provides borrowers with cash flow flexibility during the early years of a mortgage in a prudent and responsible manner. Interest only mortgages will be available only for borrowers with a strong track record in managing their debt and who can afford to repay the mortgage principal following the initial interest only period. CMHC will qualify borrowers based on the full principal and interest payment required to repay the loan in full over 25 years.