GE Capital

Definition

• GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure, GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."

Website
http://www.gecapital.ca

Notes
Also offers commercial financing.

Synonyms
mortgage insurance

Related Terms and Acronyms

• Canada Mortgage and Housing Corporation (CMHC) — Company Est. 1946, Canada-wide, Very Important,
  • The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
  ➥ Insures Canadian mortgage lenders.
• Conventional Mortgage — Definition, Important,
  • A mortgage that is not insured or guaranteed by CMHC or GE Capital.
• Escrow Account (EA) — Acronym,
  • An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
• Foreclosure — Definition,
  • The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
• High-ratio Mortgage — Definition, Important,
  • A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
• Mortgage Insurance — Definition, Very Important,
  • Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
  • A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
  ➥ CanEquity offers mortgage insurance.
• Zero Down Mortgage — Definition,
  • A mortgage product that allows the borrower to financing 100% of their property.