When do you need to purchase Mortgage Default Insurance?

Mortgage Default Insurance is added to a mortgage when a borrower is purchasing a property with a down-payment less than 20% or when a property is higher risk to the lender, such as a micro-suite, rural location or mobile home.

Mortgage default insurance is designed to protect the lender in the event the borrower defaults on their loan. The borrower is required to pay for the insurance premium. The insurance premium can be paid when completing the property transfer, or added to the total mortgage.

Once the mortgage is protected from the risk of default, the borrower is awarded the lowest mortgage rates possible for the life of their loan, or until they refinance the mortgage.

Mortgage default insurance follows the mortgage amount, and can be transferred to a new lender or transferred to a new property.

There are 3 mortgage insurers in Canada: CMHC, Canada Guaranty and Sagen.

To discuss mortgage insurance in more details, contact me at:

Adam Sale Mortgages
Cell: 778-215-4121
Email: Adamsale@dominionlending.ca