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Orginally posted by smartguy

What is CHMC/GE prem?
how much u have to par CHMC/GE , when u buy a house?
what is GDS??

plz guys i m confused about this things.


bye
smart guy

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When you buy a house and put less than 25% down payment from your sources, then the lending bank gets your mortgage insured for default through either by CMHC (Canada Mortgage and Housing Corporation) or GE Capital and your have to pay one time premium for that. The premium rate depends on the amount of down payment you are putting in.

5% down payment = 3.25% premium
10% down payment = 2.00% premium
15% down payment = 1.75% premium

and so on....

You also have to pay a one time application fee of $165 and and 8% P.S.T on the premium amount. These both charges you have to pay in cash/cheque to the lawyer at the time of closing, while the premium is added to the mortgage amount.

GDS stands for GROSS DEBT SERVICE RATIO

Answer and or clarification for these and other questions regarding house buying you can read my article on 'Mortgage Basics' at this site http://www.canadiandesi.ca/article.php?AID=54&SID=4 and for other details you can visit my website http://www.pramodchopra.com" rel="nofollow">LINK wherein you will get most of the answers and can also apply on line for mortgage, if you are already not working with a mortgage professional. Any other questions you can also email me.

Thanks and regards,