Mortgage insurance in Canada

CMHC Mortgage Insurance

Mortgage insurance protects the lender against payment default by the homebuyer. Most lenders require it if the homebuyer has less than 25 percent of the purchase price as a down payment. By providing mortgage loan insurance to lenders, CMHC enables homebuyers to finance up to 95 percent of the purchase price of a home.

Over the years, CMHC mortgage insurance products have responded to the changing needs of Canadians. CMHC introduced innovations such as purchasing a home with just five per cent down, financing renovations at the time of purchase and most recently the opportunity to refinance up to 90 per cent of the equity in the home, to provide homeowners with greater choice and home financing flexibilities.

CMHC led the market with the introduction of emili, CMHC's automated insurance risking systems, in 1996. This on-line system makes the application process for mortgage loan insurance faster and the risk assessment of the application more precise. Through innovations such as emili, and the experience we have gained through its use, CMHC is able to pass on the benefits to Canadians in the form of lower premiums, and make homeownership more affordable.

Underwriting Fee:

The underwriting fee is the cost associated with underwriting the mortgage insurance application. Fees vary depending upon the work involved in underwriting the mortgage, however you can expect to pay between $75 and $165.

Premium:

The premium for mortgage loan insurance is based on the amount of the loan in relation to the value of the home. The premium may be paid in cash or added to the mortgage.

The following are the premiums:

Genworth Mortgage Insurance

If you're purchasing a home and are borrowing more than 75% of the value of the property, the mortgage must be insured. The insurance protects the lender against borrower default. This enables you to purchase a home with as little as a 5% down payment. Mortgage insurance is not life or disability insurance.

Who is Genworth Mortgage Insurance Canada

Genworth Mortgage Insurance Canada together, with its related affiliates, is the largest private sector mortgage insurance company in the world and the only private sector supplier of mortgage insurance in Canada. Genworth works in partnership with lenders, mortgage brokers, real estate agents and builders to make housing more affordable to Canadians. We combine our experience in mortgage default insurance with our strength in technology and our extraordinary commitment to quality to provide our customers with the level of service they expect.

Genworth offers a competitive choice of flexible mortgage default insurance products for the purchase, renovation or refinancing of homes across Canada. These include a portability feature, introduced to Canadians by Genworth. We also work with lenders to provide homebuyer seminars and we offer a consultation service to lenders working with borrowers experiencing temporary difficulty in meeting their mortgage payment commitments.

Genworth understands the importance of fast, reliable processing of mortgage insurance applications. GE Excel O, our fully automated delivery and decision system enables us to receive, process and in many cases approve applications within minutes.

Genworth has been known for years as a name trusted for quality and dependability.

How Much Does Mortgage Insurance Cost

There are two fees associated with mortgage insurance: the underwriting fee
and the premium.

Underwriting Fee:
The underwriting fee is the cost associated with underwriting the mortgage insurance application. Fees vary depending upon the work involved in underwriting the mortgage, however you can expect to pay between $75 and $165.

Premium:
The Insurance premium is paid once, at the time of closing, and may be added onto the mortgage or paid separately. The premium rate varies from 0.50% to 2.75% of the mortgage amount depending on the size of your down payment. To calculate the premium, multiply the mortgage amount by the premium rate.

Premium Rages: