Insurance Types: Mini Series Part 1
- Cheryl Hartwick - Broker
- Apr 4, 2022
- 1 min read
Updated: Apr 6, 2022
๐๐๐๐๐ฎ๐ฅ๐ญ ๐๐ง๐ฌ๐ฎ๐ซ๐๐ง๐๐

Also referred to as Loan insurance.
Any mortgage in Canada that has less then 20% for down payment has Default Mortgage Insurance. This protects the lender should you default on your mortgage payment.
๐๐๐ง๐๐๐ข๐ญ๐ฌ ๐ญ๐จ ๐๐๐:
This helps individuals to purchase a property up to 95% of the purchase value.
๐๐จ๐ฐ๐ง ๐๐๐ฒ๐ฆ๐๐ง๐ญ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ฆ๐๐ง๐ญ๐ฌ:
To get mortgage default insurance, youโll need a minimum down payment. The amount depends on the homeโs purchase price:
If the home costs $500,000 or less, youโll need a minimum down payment of 5%.
If the home costs more than $500,000, youโll need a minimum of 5% down on the first $500,000 and 10% on the remainder.
Over 1,000,000 connect for the correct info.
๐๐จ๐ฌ๐ญ:
โ Your lender pays an insurance premium on #mortgage default #insurance. Itโs calculated as a percentage of the mortgage and is based on the size of your down payment. Your lender will likely pass this cost on to you. Generally, it is added to your mortgage and include it in your payments.
โ You will also pay Provincial tax on the premium, in Quebec, Ontario & Saskatchewan. This amount cannot be added to the mortgage loan amount.
๐๐ก๐๐ซ๐ญ ๐๐๐ฅ๐จ๐ฐ ๐๐ซ๐จ๐ฆ ๐๐๐๐ ๐ฐ๐๐๐ฌ๐ข๐ญ๐.
Loan to Value Up to & including 95%
4.00% Premium on Total Loan
Loan to Value Up to & including 90%
3.10% Premium on Total Loan
Loan to Value Up to & including 85%
2.80% Premium on Total Loan
Loan to Value Up to & including 80%
2.40% Premium on Total Loan
For more info on Default Mortgage insurance, connect with me today. Other premiums may apply depending on lender and type of mortgage product. Portability on Premiums may also apply.
CMHC reference on Loan Insurance
CMHC FAQ on Loan Insurance
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