Uninsured Mortgage
A mortgage with 20% or more down payment where the lender carries default risk and no insurance premium is paid.
An uninsured mortgage (also called a conventional mortgage) is one where the borrower has at least 20% down payment and default insurance is not required. The lender carries the full default risk, which is why uninsured rates run 30–60 basis points higher than equivalent insured rates. Uninsured mortgages default to 30-year amortization (vs. 25 for most insured) and have no insurance premium. The 2024 straight-switch rule applies to uninsured mortgages at renewal — you can move to a new lender without re-qualifying at the stress test.
Related Terms
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.
A mortgage with 20% or more down payment — uninsured and with a loan-to-value ratio of 80% or below.
OSFI's November 2024 policy change that eliminated the stress test for uninsured mortgage renewals when switching lenders with unchanged amount, amortization, and payment schedule.