When I bought my condo, because I could only put down 10%, so I had to pay CMHC (Canada Mortgage Housing Corporation) insurance premium (about 12 000 dollars I believe but I could be completely wrong here.)
Now what exactly is this insurance payment for? i.e what do I get in exchange for what I pay. From what I understand, this is more for the protection of the lender in case I default.
Also at the end of the 5 yr term, when I re new the mortgage, do i need to pay additional money for the insurance? Unlike other insurances, this one does not seem like it is a monthly payment.