Insured Mortgage
A mortgage where CMHC, Sagen, or Canada Guaranty carries the default risk — required when the down payment is less than 20% of the purchase price.
An insured mortgage carries default insurance from CMHC, Sagen, or Canada Guaranty. Insurance is mandatory when the down payment is less than 20% (a 'high-ratio' mortgage), and the premium is paid by the borrower (typically added to the loan balance). Lenders prefer insured mortgages because they carry zero default risk, so they offer 30–60 basis points better pricing than uninsured equivalents. As of December 2024, the insured mortgage cap rose from $1M to $1.5M, meaningfully expanding first-time buyer access in high-cost markets. First-time buyers purchasing new builds can also access 30-year amortization on insured mortgages.
Related Terms
A mortgage with 20% or more down payment where the lender carries default risk and no insurance premium is paid.
Canada's federal housing agency and one of three mortgage insurance providers, backing insured mortgages and publishing housing market data.
A mortgage with less than 20% down payment — loan-to-value ratio above 80% — that must carry default insurance.
Related Guides
Related FAQs
- What's the difference between insured and uninsured mortgage renewals?
- How do CMHC-insured mortgages benefit you with smaller down payments?
- What are the loan and property value limits for CMHC-insured mortgages?
- What creditworthiness and debt service requirements are required for CMHC-insured mortgages?
- How do 2024 reforms impact insured variable products?