Glossary · Buying and financing
Mortgage default insurance
Mortgage default insurance protects the lender, not you, and is required when your down payment is less than 20% of the purchase price.
It's provided by CMHC or a private insurer. The premium is a percentage of the loan that falls as your down payment rises, and it's normally added to the mortgage balance rather than paid up front. Insured mortgages are only available on homes priced under $1.5 million.
Related terms
General information, not legal or tax advice. Rules change; confirm the current figures with the province or your notary or lawyer before relying on them.
