# How Does Mortgage Insurance Impact My Options?

> Mortgage insurance, from CMHC and private insurers, protects lenders if you default.

Category: Investor
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/investor/how-does-mortgage-insurance-impact-my-options

## Answer
Key points about mortgage insurance:

* Protects lenders from borrower default.
* Allows for lower down payments.
* Doesn't replace sound lending practices.

## Institutional highlights
- Mortgage insurance helps protect lenders if you can't make your payments, but it doesn't replace careful loan evaluation.
- Your lender can get mortgage insurance from CMHC or a private company, and they'll check them out carefully.
- Lenders look at how well an insurer pays claims, their financial health, and how they're managed.
- CMHC insurance can help you buy a home with a lower down payment, and you can use different sources for that down payment.

## Related guide
- https://ratellow.com/guides/multi-unit-financing-rules

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017