Down Payment
Mortgage loan insurance can allow eligible homebuyers to purchase a home with a down payment below 20% of the purchase price.
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HOMEBUYER RESOURCES
Different types of insurance can protect the lender, your property, your mortgage and your family throughout homeownership.
Mortgage loan insurance, mortgage life insurance and title insurance each serve a different purpose. Understanding the difference can help you know what may be required and what additional protection may be available to you.
KNOW WHAT’S PROTECTED
Mortgage loan insurance primarily protects the lender against mortgage default, while mortgage life insurance is designed to help protect your family if something happens to you.
Title insurance provides protection against certain problems affecting the ownership or title of your property.
MORTGAGE DEFAULT PROTECTION
Mortgage loan insurance protects lenders against mortgage default and allows eligible buyers to purchase a home with a down payment of less than 20%.
The insurance premium depends on factors including the amount borrowed and the size of the down payment. The premium may be paid as a lump sum or added to the mortgage and included in your mortgage payments.
Mortgage loan insurance protects the lender if the borrower is unable to repay the mortgage. It does not replace insurance designed to protect the homeowner or their family.
INSURED MORTGAGES
Eligibility for insured mortgages is subject to federal requirements and the underwriting rules of the lender and mortgage insurer.
Mortgage loan insurance can allow eligible homebuyers to purchase a home with a down payment below 20% of the purchase price.
Government-backed mortgage insurance is available on eligible residential properties valued below the applicable federal insured mortgage price limit.
Maximum amortization periods depend on the borrower and property. Some first-time homebuyers and purchasers of newly built homes may qualify for longer insured amortization periods.
Borrowers must satisfy applicable mortgage qualification, credit, income-verification and property requirements.
Your mortgage professional can help you understand the requirements that apply to your purchase and determine whether mortgage loan insurance is required.
MORTGAGE LOAN INSURANCE PROVIDERS
For more information about mortgage loan insurance, speak with your mortgage professional or visit one of Canada’s mortgage loan insurance providers.
OTHER TYPES OF PROTECTION
These products provide different forms of protection from mortgage loan insurance and should be considered separately.
PROTECT YOUR FAMILY
Mortgage life insurance is designed to protect your family from the financial burden of paying off your mortgage if something happens to you.
It is a life insurance policy that pays the outstanding mortgage balance to the lending institution.
PROTECT YOUR OWNERSHIP
When you purchase a home, you are purchasing title to the property. Title insurance provides protection against certain problems affecting the ownership or title of your property.
Coverage can include risks inherent in real estate transactions, including certain forms of title fraud, and generally remains in place for as long as you own your home.
TITLE INSURANCE PROVIDERS
For more information, talk to your mortgage professional or contact a title insurance provider.