Mortgage Insurance
Mortgage Default Insurance & Home Insurance
Mortgage Default Insurance
Mortgage default insurance (also called CMHC insurance or mortgage loan insurance) protects the lender in case the borrower cannot make their mortgage payments. In Canada, it is usually required if your down payment is less than 20% of the home’s purchase price.
- Protects the lender, not the borrower.
- Allows buyers to get a mortgage with as little as 5% down.
- The cost is added to your mortgage or paid upfront.
- Insurance premium is based on your down payment amount — smaller down payments mean higher premiums.
Home Insurance
Home insurance protects your home and belongings from damage or loss due to events like fire, theft, or natural disasters. Most lenders require you to have home insurance before approving your mortgage.
- Covers the structure of your home, personal belongings, and liability.
- You can choose additional coverage, like for flood or earthquake, depending on your location.
- Protects you financially if something happens to your property.
- Premiums are paid monthly or yearly, often through your mortgage lender.
