Required when your down payment is under 20% — it lets you buy with as little as 5% down.
Free quick-reference guide (PDF, courtesy of TRREB). Save or print for easy reference.
⬇ Government-Backed Mortgage Insurance (PDF)Mortgage default (loan) insurance protects the lender if a borrower defaults, allowing Canadians to buy with as little as 5% down. Premiums (roughly 2.8%–4.0% of the mortgage) are added to your loan.
| ✓ Down payment between 5% and 19.99% |
| ✓ Home price under $1.5M (as of Dec 2024) |
| ✓ Meet lender + insurer qualification |
| ★ Buy sooner with a smaller down payment |
| ★ Access better interest rates than uninsured in some cases |
| ★ 30-year amortization now available for first-time buyers & new builds |
| → Get pre-approved with a mortgage professional |
| → Insurer (CMHC, Sagen, Canada Guaranty) approves with your lender |
| → Premium is added to your mortgage |
Common questions about this program.
5% on the first $500,000, 10% on the portion $500K–$1.5M, and 20% at $1.5M+.
Contact Tej Thakor, Broker of Record at Royal LePage Terra Realty, for professional real estate guidance across the GTA and surrounding areas — in English, Hindi & Gujarati.
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