Lenders typically require mortgage insurance when homebuyers make a down payment of less than 20% of the purchase price. Three companies in Canada insure mortgages: Canada Mortgage Housing Corporation (CMHC), Sagen, and Canada Guarantee. 

 

The mentioned companies all insure your loan but charge an additional insurance premium. Insurers require a minimum down payment for homes under $1 million and an amortization of less than 25 years.  As of December 15, 2024, the government of Canada has introduced a new cap for 30-year insured mortgages for all first-time home buyers and all buyers of newly built properties. Under this reform, the new cap for insured mortgages is $1,500,000 and 30-year amortization or less.

 

We automatically calculate the insurance premium and the minimum down payment. When applicable, the premiums are added to your mortgages. When insurance is not required, the app will show "uninsured".

 

In some instances, the mortgage is "insurable," which means that the scenario meets the insurer guidelines (less than $1M and 25-year amortization), but you have more than 20% down payment. Technically, the lender does not require you to purchase insurance because you have a sufficient down payment. However, since insured mortgages have additional benefits like slightly lower rates, you may choose to purchase insurance anyway. If the mortgage becomes insurable, the app will give you an option to add insurance to the scenario via tap of a button.