Mortgage Rates

Canada Mortgage DEFAULT Insurance

December 18, 2009 by nikki · Leave a Comment 

lady_dog

Mortgage DEFAULT Insurance

Mortgage Default Insurance is mandatory for any mortgage over 80% loan to value in Canada.

There are currently three Mortgage Insurers in the Canadian Market allowing Canadians the dream of Home Ownership with as little as zero down.

  • CMHC – Government owned and run
  • Genworth – American owned and run
  • AIG – American owned and run

Mortgage insurance is NOT the same as Mortgage LIFE Insurance.

There are many different products that are common among these insurers, as well as some that are unique to each.  Although the general rule of thumb with insured mortgages is when your mortgage is high ratio – 20% or less down, some insurers will still insure the mortgage if you need or want to participate in a specific insurer program.  Typically the premium for these situation are 1%.

Some commonly used programs offered by the insurer are:

  • 5% Free Down Payment Program
  • Flex Down
  • Purchase and Refinance high ratio mortgages

Mortgage Default Insurance Premiums are as follows:

Loan Size (% of Lending Value)

Single Advance Premium

(% of Loan)

Up to and including 65%

 0.50%

Up to and including 75%

 0.65%

Up to and including 80%

 1.00%

Up to and including 85%

 1.75%

Up to and including 90%

 2.00%

Up to and including 95%

 2.75%

Up to and including 95%

 2.90% (Flex Down Program Only)

Up to and including 100%

 3.10%

Extended Amortizations

Add .20% for every 5 years over 25 years
Filed in: Mortgage Rates

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