CMHC and Flood Damaged Homes in YYC / Calgary
We get this question often as there is lots of fully bizarre data out there.
Here is what we are seeing. Remember, as the #1 mortgage brokerage/ franchise in ALL of Canada for 2013 at the countries largest SuperBroker – Mortgage Alliance we see lots of deal flow so this is based off of many hundreds of conversations with the insurers and lenders:
- IF the flood damage has been repaired AND you are in the flood zone then an insurer (CMHC/ Genworth/ Canada Guarantee) WILL / can insurer your purchase with as little as 5% down as long as all the other normal criteria are met.
- IF there is damage that is not repaired then the odds of an approval with an insurer are very, very LOW. Often, even if you put 20% or more down, and do the purchase without CMHC involved, the lenders are not taking the risk and doing them.
the KEY is to fix the damage first, then sell.
Call if you have any questions on this as there are many specific examples that are not mentioned above.