# How does mortgage insurance impact me and my lender?

> Mortgage insurance protects the lender if you default.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/how-does-mortgage-insurance-impact-me-and-my-lender

## Answer
Let's examine the components that mortgage insurers look for when insuring mortgages:

| Component                   | Purpose                                                                        |
| --------------------------- | ------------------------------------------------------------------------------ |
| Creditworthiness           | Assessing borrower's ability to repay the loan.                               |
| Loan-to-Value (LTV) Ratio   | Comparing loan amount to property value; lower LTV reduces risk.                |
| Debt Service Ratios (GDS/TDS) | Evaluating ability to manage payments alongside other financial obligations.     |
| Property Assessment          | Determining accurate property value through appraisal.                         |

## Institutional highlights
- Mortgage insurance protects your lender if you can't make your payments.
- Your lender carefully checks out mortgage insurance companies.
- Lenders look at how well the insurer pays claims, their financial health, and their management.
- Your lender keeps checking on the insurance company while you have your mortgage.
- Your lender follows the insurance company's rules for things like property value and paperwork.

## Related guide
- https://ratellow.com/guides/variable-trigger-points

## Sources
- Property appraisals — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Debt service coverage — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.3