CMHC and Sagen

CMHC and Sagen

High Ratio Fees

If you are looking to purchase a property with less than 20% of the purchase price as a down payment, all banks require that the Mortgage be insured through either The Canadian Mortgage and Housing Corporation, (CMHC), or Sagen. These institutions provide mortgage insurance to homebuyers and have identical premiums of which are listed below.

Loan-to-Value Premium on Total Loan
Up to and including 65% 0.60%
Up to and including 75% 1.70%
Up to and including 80% 2.40%
Up to and including 85% 2.80%
Up to and including 90% 3.10%
Traditional Down Payment Up to and including 95% 4.00%
Non-Traditional Down Payment 4.50%

Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment — with interest rates comparable to those with a 20% down payment!

To obtain mortgage loan insurance, lenders pay an insurance premium. Your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

For more information try visiting CMHC’s website at:

Note: Rules and guidelines are subject to change. Please inquire within.