How do consumers benefit?
Consumers can become home owners sooner. Default insurance enables consumers to borrow from us to purchase homes with a down payment as low as 5%, at interest rates comparable to mortgages with a 20% down payment.
How do CWB and CWT benefit?
Default insurance helps to protect CWB and CWT against loss as a result of a mortgage default, and allows us to offer mortgages with down payments of less than 20%. This insurance reduces the risk of loss, allowing us to offer borrowers (like you) mortgages at much lower interest rates and with smaller down payments than would otherwise be required. CWB and CWT receive no payments or benefits other than payment received by us in respect of a claim made by us under the default insurance.