# Under what specific conditions can a borrower re-borrow prepaid funds from a Sagen-insured mortgage?

> Re-borrowing prepaid funds is permitted on Sagen-insured mortgages without incurring additional mortgage insurance premiums, provided certain criteria are met .

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/under-what-specific-conditions-can-a-borrower-re-borrow-prepaid-funds-from-a-sagen-insured-mortgage

## Answer
Re-borrowing prepaid funds is permitted on Sagen-insured mortgages without incurring additional mortgage insurance premiums, provided certain criteria are met . This allows borrowers to tap into previously paid principal under qualifying circumstances.

## Institutional highlights
- Re-borrowing prepaid mortgage funds isn't meant to help if you're struggling to make payments.
- To re-borrow, your mortgage needs to be in good standing, with no late payments recently.
- Make sure your property taxes are completely paid and up-to-date before you re-borrow.
- The total amount you owe, including what you re-borrow, can't be more than your original mortgage amount based on your initial payment schedule.
- If someone else takes over your mortgage, they can't access any of the extra payments you made.

## Related guide
- https://ratellow.com/guides/mortgage-prepayment-privileges

## Sources
- Mortgage Insurance Prepay and Re-Advance Policy — https://www.sagen.ca/ups/underwriting-documentation/#mortgage-insurance-prepay-and-re-advance-policy-638f55989d20b
- 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
- Notes — https://www.bankofcanada.ca/rates/banking-and-financial-statistics/posted-interest-rates-offered-by-chartered-banks/#notes