# What's the difference between insured and uninsured mortgage renewals?

> Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.

Category: Renewal
Last verified: 2026-03-12
Source: https://ratellow.com/faqs/renewal/whats-the-difference-between-insured-and-uninsured-mortgage-renewals

## Answer
- Insured maximum: 25-year amortization (30-year for first-time buyers on new builds)
- Uninsured flexibility: 30+ year amortization periods available
- Insurance premiums: 2.80%-4.00% of mortgage amount for insured only
- Maximum insurable amount increased to $1.5M (from $1M in December 2024)

**Renewal Comparison Matrix:**

| Feature | Insured (< 20% down) | Uninsured (20%+ down) |
|---|---|---|
| Max Amortization | 25 years (30 FTHB) | 30+ years available |
| Qualifying Standards | Insurer + OSFI | OSFI B-20 only |
| Premium Cost | 2.80%-4.00% | None |
| Max Property Value | $1.5M | No limit |
| Self-Employed Surcharge | +0.25% premium | Standard rates |

**Payment Impact Example ($500K mortgage):** Extending from 25 to 30-year amortization saves ~$240/month but costs ~$88,400 additional total interest.

Uninsured borrowers gain significant negotiating leverage through amortization flexibility unavailable to insured mortgage holders.

## Institutional highlights
- **Mortgage Insurance Provider Requirements**
CMHC, Sagen, and Canada Guaranty maintain separate underwriting standards that FRFIs must meet for insured mortgages.
- **OSFI Amortization Expectations**
FRFIs should maintain average amortization periods below their stated maximums across their mortgage portfolios.
- **Self-Employed Premium Surcharge**
Additional 0.25% insurance premium applies to self-employed borrowers with non-traditional income documentation.

## Related guide
- https://ratellow.com/guides/renewal-switch-vs-stay

## Sources
- Mortgage Stress Test Rules — https://ratellow.com/guides/osfi-stress-test-explained
- Amortization — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- Debt service coverage — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- CMHC Mortgage Default Insurance — https://www.cmhc-schl.gc.ca