SKYIRE HomeIndex Mortgage vs. CMHC insured mortgage

SKYIRE HomeIndex Mortgage can save you thousands of dollars on your monthly payments compared to a CMHC insured mortgage.

CMHC – 90% HomeIndex Mortgage Potential savings
Home purchase price $500,000 $500,000
Down payment

$50,000 (10%)

$50,000 (10%)
Loan-to-value
ratio (LTV)
High-ratio insured up to 95% HIM up to 90%
Mortgage amount $450,000

$450,000

(10% HIM + 80%  first mortgage)

Max. amortization 25 years HIM portion is interest only. Option to have first mortgage 30 years.
Insurance
premium
3.1% on purchase price 2.4% on purchase price $3,150

0.7% difference

Interest
rate (As of July 2017)
3.0% 2.85% interest only on the HIM (10%)
3.0% on the conventional portion (80%)
 

Monthly payment (25 yrs.)

$2,209.21

(25 yr. amortization)

 

$1,870.46

(25 yr. amortization)

 

$338.85 / month

(25 yr. amortization)

 

Or

Monthly payment (30 yrs.)

 

30 yr. not allowed.

$1,790.86

(30 yr. amortization)

$418.45 / month

(30 yr. amortization)

5 Years payment total (25 yrs.) $132,558 $112,227 $20,331
Or

5 Years payment total (30 yrs.)

Not allowed $107,451 $25,107
Indexed to property value N/A Market value % increase (minimum CPI principal balance adjustment)
 

Home value growth & Index value change – 5 yr. CPI (1.76%)

 

N/A

$45,576

Index amount $4,5571

$41,019

Increase equity value at the minimum CPI rate

Total potential savings over 5 yrs. (incl. premium savings).  $132,558

(25 year)

$107,451

(30 year)

$28,257

1 $500,000 x 5 yr. CPI at 1.76% = $45,576 & HIM amount at 10% x $45,576 = $4,557

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