So let’s just jump into this fact. Putting down 20% on your mortgage avoids default insurance cost, and PST on that premium payable at the lawyers, but it does increase your rate. Yes, more down does not necessarily mean better rate.
“It is the world of insurance and an insured mortgage takes the plate when it comes to rate.”
Duncan Wilson Mortgage Broker
In some situations your 20% down payment results in an “in”surable mortgage. The rate is not as high as an uninsured mortgage in most cases.
Too low of a credit score results in not being able to grab insurance or have your mortgage become insurable.
- If you refinance your home you are an uninsured mortgage. Don’t feel too bad it’s new rules and everyone generally has a higher rate when they refinance.
- Many uninsured mortgage tend to be B lending Mortgages. These are “stated income” and or cash flow lending.
All these factors increase risk and rate. Talk to your broker or agent. Get the best rate and make sure your get the right path to your mortgage approval.