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  • Cheryl Hartwick - Broker

Insurance Types: Mini Series Part 1

Updated: Apr 6

๐ƒ๐ž๐Ÿ๐š๐ฎ๐ฅ๐ญ ๐ˆ๐ง๐ฌ๐ฎ๐ซ๐š๐ง๐œ๐ž


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.





๐๐ž๐ง๐ž๐Ÿ๐ข๐ญ๐ฌ ๐ญ๐จ ๐˜๐Ž๐”:

This helps individuals to purchase a property up to 95% of the purchase value.


๐ƒ๐จ๐ฐ๐ง ๐๐š๐ฒ๐ฆ๐ž๐ง๐ญ ๐ซ๐ž๐ช๐ฎ๐ข๐ซ๐ž๐ฆ๐ž๐ง๐ญ๐ฌ:

To get mortgage default insurance, youโ€™ll need a minimum down payment. The amount depends on the homeโ€™s purchase price:

If the home costs $500,000 or less, youโ€™ll need a minimum down payment of 5%.

If the home costs more than $500,000, youโ€™ll 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.


๐‚๐จ๐ฌ๐ญ:

โœ… Your lender pays an insurance premium on #mortgage default #insurance. Itโ€™s 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.

โœ… You will also pay Provincial tax on the premium, in Quebec, Ontario & Saskatchewan. This amount cannot be added to the mortgage loan amount.


๐‚๐ก๐š๐ซ๐ญ ๐›๐ž๐ฅ๐จ๐ฐ ๐Ÿ๐ซ๐จ๐ฆ ๐‚๐Œ๐‡๐‚ ๐ฐ๐ž๐›๐ฌ๐ข๐ญ๐ž.

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

https://www.cmhc-schl.gc.ca/en/consumers/home-buying/mortgage-loan-insurance-for-consumers/what-is-mortgage-loan-insurance

CMHC FAQ on Loan Insurance

https://www.cmhc-schl.gc.ca/en/consumers/home-buying/mortgage-loan-insurance-for-consumers/faqs-mortgage-loan-insurance



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