A mortgage where the down payment is less than 20%, requiring mortgage default insurance.
High-ratio or insured mortgages require CMHC, Sagen, or Canada Guaranty insurance. The insurance premium (2.80% to 4.00% of the mortgage amount) is added to the mortgage. Insured mortgages are limited to properties under $1.5 million (as of Dec 2024) with a maximum 25-year amortization (30 years for first-time buyers as of 2024). Insured mortgages often receive slightly lower interest rates because the insurance eliminates default risk for the lender.
Related terms: CMHC Mortgage Insurance | Conventional Mortgage | Down Payment