Rate Relief From 3.99%
What if you have less than 20% for a down payment?
These insurance providers allow access to high-ratio mortgages to help you buy a home.
If you want to buy your home or property in Canada with a down payment of less than 20% of the purchase price (called a high-ratio mortgage), it can only happen through mortgage default insurance.
This type of insured mortgage helps protects the lender against borrower default. Like any insurance, there is a premium involved which is usually passed onto the borrower. There are currently three mortgage insurance providers in Canada:
CMHC is a Crown corporation and the most well-known, and the latter two are private companies.
Your lender will arrange for the purchase of your mortgage insurance with the provider they use.
The premium payable is based on a percentage of the home’s purchase price (may vary by provider), and the exact cost will be provided when you apply for a mortgage. It can be paid in a single lump sum or it can be added to your mortgage loan amount and included in your monthly payments.
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% |
Connect with us online, over the phone, or walk into a convenient store location, and we'll happily help you through this process, while providing expert advice. Plus, we'll get your best possible rate, to save you even more on your high-ratio mortgage.
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