Default Mortgage Insurance

In Canada, default mortgage insurance is required for homebuyers who are unable to make a down payment of at least 20% of the purchase price. This insurance protects the lender in case the borrower defaults on the loan. It’s typically needed when buying a home with a down payment between 5% and 19.99%.

The main providers of default mortgage insurance in Canada are:

  1. Canada Mortgage and Housing Corporation (CMHC)
  2. Sagen
  3. Canada Guaranty

These providers offer mortgage default insurance to help borrowers secure financing when they don’t meet the 20% down payment requirement.

2025 Mortgage Insurance Premium Rates

The premiums for mortgage insurance vary depending on the loan-to-value (LTV) ratio and the size of your down payment. Below is the 2025 premium rate chart:

Loan-to-Value (LTV) Ratio

Premium Rate

80.01% – 85%

2.80%

85.01% – 90%

3.10%

90.01% – 95%

4.00%

Over 95%

4.50%

*Note: These premiums are based on the size of the mortgage and are typically added to the mortgage balance, making them part of your monthly payments. And additional premium may apply based on amortization. It’s important to research and understand the costs associated with mortgage insurance to ensure you’re prepared when purchasing a home with a smaller down payment.