How much do you need for a downpayment in Alberta 2011

How much do you need for a downpayment in Alberta 2011 ; According to the recent Federal Legislative guidelines coming into effect October 15, 2008, one must have a minimum down payment of at least 5% of the total cost of the prospective property. With a down payment between 5 - 19.99%, one's mortgage is deemed "high-ratio". A high ratio mortgage is subject to an insurance premium from one of the three insurance providers in Canada who are CMHC, Genworth Financial, and AIG United Guaranty that all adhere to the following schedule:

With a down payment of 20% or greater, the mortgage is deemed "conventional". A conventional mortgage is not subject to any insurer's fees. Thus, a larger down payment represents a two-fold advantage to the prospective homebuyer. First, the prospective homebuyer will avoid insurance premiums with 20% down payment. Secondly, a larger down payment will relate into smaller monthly payments, or a shorter amortization; both of which lead to interest savings over the life of the mortgage. For the latest updates PRESS CTR + D or visit Stock Market news Today

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