14th Mar, 2013

Hidden Foreclosures & the Canada Mortgage and Housing Corporation Mortgage Insurance

Contact D. W. Howard Realty for information on mortgage insurance, and the current housing market situation and unique real estate needs in Fort Erie ON, Port Colborne Ontario, Ridgeway ON, and Crystal Beach Ontario Canada.

The Canada Mortgage & Housing Corporation (CMHC) has been asking Canadian real estate agents to hide from consumers the fact that they are sellers in the transaction, which would indicate that the listing is a home in foreclosure.

Currently, it is mandatory to disclose that the CMHC is the one in possession of a property, when it is loaded onto the MLS system of local boards. In Quebec, there is even a mandatory repossession field where real estate brokers must check yes or no.

In Canada, buyers purchasing a home with less than a 20% down payment  and who borrow from a financial institution covered by the Bank Act are required to get mortgage default insurance.  CMHC is backed 100% by the Canadian federal government, and controls about 75% of the mortgage insurance market.

Canada-wide, foreclosures appear to be on the decline. According to the Canadian Bankers Association only .32% of mortgage holders are in arrears, and this number is declining.

 Click here to search Niagara area homes for sale proudly presented by D. W. Howard Realty Ltd. Brokerage of Ridgeway Ontario.

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