Ontario Real Estate Licensing Exam Practice · Question
A client is seeking to purchase a commercial property in Toronto with a down payment of 10%. As their real estate salesperson, what should you advise them about CMHC mortgage insurance for this transaction?
CMHC mortgage insurance primarily applies to residential properties. While CMHC does have some programs for multi-unit residential or affordable housing, genera
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Question: A client is seeking to purchase a commercial property in Toronto with a down payment of 10%. As their real estate salesperson, what should you advise them about CMHC mortgage insurance for this transaction?
Answer options: ✅ CMHC insurance is generally not available for commercial properties.
- CMHC insurance is mandatory for all commercial properties with less than 20% down.
- CMHC insurance will cover the full 90% of the loan amount.
- Commercial properties automatically qualify for the same CMHC insurance rules as residential properties.
Correct answer: CMHC insurance is generally not available for commercial properties.
Explanation: CMHC mortgage insurance primarily applies to residential properties. While CMHC does have some programs for multi-unit residential or affordable housing, general commercial properties are typically not eligible for standard CMHC high-ratio mortgage insurance.
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