Question 9

Your FAQ Answer

Question: Number 9 - I am wanting to purchase 1 1/4 section of land & have the 25% down payment, does cmhc need to be involved. Also the bank tells me they want 50% secured, is this correct.

Answer: Large parcels are harder to sell than a regular city property with a house. This increases the risk for a lender. To offset the risk, they will want more money down, or ask you to obtain CMHC or GE mortgage insurance. There is no blanket answer, as each situation is unique. We can help if you email us with more info. Sometimes we can get lenders to accept less down - like 10%.