Mortgage Insurance

Mortgage insurance, also known as mortgage default insurance is a type of insurance that lenders use to protect themselves against the risk of borrowers defaulting on their mortgage payments. 🏡

This type of insurance is required by the Government of Canada for borrowers who have less than a 20% down payment. The cost of the insurance is typically added to the mortgage payments and paid by the borrower over the life of the mortgage. 💵

If the borrower defaults on their mortgage payments, the lender will be able to make a claim on the insurance policy to recover some or all of the outstanding balance of the mortgage.

In Canada, mortgage default insurance is provided through CMHC, Sagen, or Canada Guaranty. Mortgage insurance can also be provided by private companies depending on the type of mortgage and the lender's requirements.

To learn more about whether you will require mortgage insurance for your mortgage, send us a message today ✨.