Mortgage Default Insurance
Mortgage Default Insurers
In Canada, if your down payment is less than 20% of the purchase price, your mortgage must be insured against default. Here's what you need to know about the three approved insurers.
What is Mortgage Default Insurance?
Mortgage default insurance (sometimes called CMHC insurance) protects the lender — not the borrower — if you default on your mortgage. It's required by law for high-ratio mortgages (less than 20% down) on homes priced under $1.5 million. The premium is added to your mortgage and paid off over the amortization period.
Canada Mortgage and Housing Corporation
Federal Crown Corporation
CMHC is the largest and most well-known mortgage default insurer in Canada. As a federal Crown corporation, it plays a key role in making housing affordable and accessible for Canadians.
- Government-backed — the most widely accepted insurer
- Available for owner-occupied properties up to $1.5M
- Minimum 5% down payment required
- Amortization up to 30 years for first-time buyers on new builds
Sagen MI Canada Inc.
Private Insurer
Formerly known as Genworth Canada, Sagen is a private mortgage insurer that offers competitive products and flexible underwriting guidelines, sometimes accepting applications that CMHC may not.
- Flexible underwriting — may approve where CMHC declines
- Competitive premium rates
- Available for owner-occupied and rental properties
- Strong track record with self-employed borrowers
Canada Guaranty Mortgage Insurance Company
Private Insurer
Canada Guaranty is a Canadian-owned private mortgage insurer known for innovative products and strong lender relationships. They offer unique programs for non-traditional borrowers.
- Innovative products for non-traditional borrowers
- Strong support for new Canadians and newcomers
- Competitive rates and flexible guidelines
- Canadian-owned and operated
Premium Rate Table
Premiums are the same across all three insurers (regulated by OSFI). The premium is added to your mortgage balance.
| Loan-to-Value | Down Payment | Premium Rate |
|---|---|---|
| Up to 65% | 35% or more | 0.60% |
| 65.01% – 75% | 25% – 34.99% | 1.70% |
| 75.01% – 80% | 20% – 24.99% | 2.40% |
| 80.01% – 85% | 15% – 19.99% | 2.80% |
| 85.01% – 90% | 10% – 14.99% | 3.10% |
| 90.01% – 95% | 5% – 9.99% | 4.00% |
Questions about mortgage insurance?
Christine can help you understand which insurer and product is right for your situation.
Talk to Christine