# How does mortgage insurance affect my ability to extend my amortization?

> Mortgage insurance, provided by CMHC and private insurers like Sagen, protects lenders if a borrower defaults.

Category: Renewal
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/renewal/how-does-mortgage-insurance-affect-my-ability-to-extend-my-amortization

## Answer
CMHC insurance offers various options:

* Purchase: To help with minimum down payments.
* Improvement: For purchases with planned renovations.
* Newcomers: Available to borrowers who are permanent and non-permanent residents.

Heads up: Non-traditional down payments (like unsecured loans) are generally NOT accepted for insured mortgages; CMHC and other insurers require traditional down payments.

## Institutional highlights
- Mortgage insurance helps protect your lender if you can't make your payments.
- Even with mortgage insurance, your lender will still carefully review your application.
- Your lender can get mortgage insurance from the government or private companies.
- Your lender is responsible for checking the quality of your mortgage insurance provider.
- If you have an insured mortgage, your lender must follow the insurer's rules for things like property value.

## Related guide
- https://ratellow.com/guides/refinance-extend-amortization

## Sources
- Property appraisals — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1