Insured vs Uninsured vs Uninsurable Mortgage in Canada 2026
Updated
Three Mortgage Categories in Canada
Feature
Insured
Insurable (Uninsured)
Uninsurable
Down payment
5–19.99%
20%+
20%+
Mortgage insurance
Required (buyer pays)
Optional (lender pays)
Not available
Max purchase price
$1,499,999
$1,499,999
No limit
Max amortization
25 years
25 years
30+ years available
Who pays insurance?
Buyer (added to mortgage)
Lender (if they choose)
N/A
Stress test
Qualifying rate or contract + 2%
Same
Same
Typical rate
Lowest
+0.10–0.20% higher
+0.15–0.40% higher
Available from
All lenders
Most lenders
Select lenders
How It Affects Your Mortgage Rate
Mortgage Amount
Insured Rate
Insurable Rate
Uninsurable Rate
Monthly Difference
$400,000
4.29%
4.39%
4.54%
$21–$46
$500,000
4.29%
4.39%
4.54%
$27–$58
$600,000
4.29%
4.39%
4.54%
$32–$69
$800,000
N/A
4.39%
4.54%
$55
While the rate differences appear small, over a 25-year amortization they add up significantly.
Insured Mortgages (High-Ratio)
When Your Mortgage Is Insured
Condition
Requirement
Down payment
Less than 20%
Purchase price
Under $1,500,000
Amortization
25 years or less
Property type
Owner-occupied
Borrower credit score
600+ (varies by insurer)
Stress test
Must qualify at higher of contract rate + 2% or qualifying rate
CMHC Insurance Premiums
Down Payment
Premium (% of Mortgage)
Premium on $500K Mortgage
5% (up to $500K)
4.00%
$19,000
10%
3.10%
$13,950
15%
2.80%
$11,900
19.99%
2.40% (approx.)
—
20%+
$0 (no insurance required)
$0
Who Provides Mortgage Insurance?
Insurer
Market Share (Approx.)
Notes
CMHC (Canada Mortgage and Housing Corporation)
~50%
Government-owned Crown corporation
Sagen (formerly Genworth)
~30%
Private company, publicly traded
Canada Guaranty
~20%
Private company
Insurable (Uninsured) Mortgages
When Your Mortgage Is Insurable
Condition
Requirement
Down payment
20% or more
Purchase price
Under $1,500,000
Amortization
25 years or less
Property type
Owner-occupied or rental (some insurers)
New purchase
Yes (not a refinance)
Stress test
Must qualify at qualifying rate
Why It Matters
Even though the borrower doesn’t pay for insurance, the lender may choose to insure the mortgage at their own expense (called “portfolio insurance” or “bulk insurance”). This costs the lender about 0.5-2.5% of the mortgage amount. Lenders pass some of this cost on through slightly higher rates.
The borrower’s benefit: slightly lower rates than uninsurable, because the lender can reduce their capital requirements.
Uninsurable Mortgages
When Your Mortgage Is Uninsurable
Trigger
Details
Amortization over 25 years
30-year amortization = uninsurable
Purchase price $1,500,000+
Properties above the insurable threshold
Refinance
All refinances are uninsurable
Rental property (some cases)
Some insurers don’t cover rental purchases
Non-owner-occupied
Investment properties may be uninsurable
Previous default history
Borrowers with certain credit events
Rate Impact
Uninsurable mortgages carry the highest rates because lenders must hold more capital and bear all default risk:
Mortgage Type
Typical 5-Year Fixed Rate
Spread Above Insured
Insured
4.29%
—
Insurable
4.39–4.49%
+0.10–0.20%
Uninsurable
4.54–4.69%
+0.25–0.40%
Common Scenarios and Classification
Scenario
Down Payment
Purchase Price
Amortization
Classification
Buying $500K home, 5% down
$25,000
$500,000
25 years
Insured
Buying $500K home, 20% down
$100,000
$500,000
25 years
Insurable
Buying $500K home, 20% down
$100,000
$500,000
30 years
Uninsurable
Buying $1.2M home, 20% down
$240,000
$1,200,000
25 years
Insurable
Buying $1.6M home, 20% down
$320,000
$1,600,000
25 years
Uninsurable
Refinancing $400K mortgage
N/A
N/A
Any
Uninsurable
Buying rental property, 20% down
$80,000
$400,000
25 years
Depends on insurer
Down Payment Rules and Minimum Thresholds
Purchase Price
Minimum Down Payment
Mortgage Category
Up to $500,000
5%
Insured
$500,001–$999,999
5% on first $500K + 10% on remainder
Insured
$1,000,000–$1,499,999
20%
Insurable
$1,500,000+
20%
Uninsurable
Down Payment Examples
Purchase Price
Minimum Down Payment
Amount
Category
$400,000
5%
$20,000
Insured
$600,000
5% of $500K + 10% of $100K
$35,000
Insured
$800,000
5% of $500K + 10% of $300K
$55,000
Insured
$1,000,000
20%
$200,000
Insurable
$1,500,000
20%
$300,000
Uninsurable
$2,000,000
20%
$400,000
Uninsurable
Total Cost Comparison
Item
Insured (10% down)
Insurable (20% down)
Uninsurable (20% down, 30yr)
Home price
$500,000
$500,000
$500,000
Down payment
$50,000
$100,000
$100,000
Mortgage
$450,000
$400,000
$400,000
CMHC premium
$13,950
$0
$0
Total mortgage
$463,950
$400,000
$400,000
Rate
4.29%
4.39%
4.59%
Monthly payment
$2,525
$2,178
$2,069
Total interest (full term)
$293,511
$253,329
$344,878
Total cost (mortgage + interest + premium)
$757,461
$653,329
$744,878
Key insight: Despite paying CMHC insurance, the insured mortgage gets the best rate. But the insurable mortgage (20% down) has the lowest total cost because you avoid the insurance premium and borrow less. The uninsurable 30-year amortization has the lowest monthly payment but the highest total interest.