Default Mortgage Insurance
Mortgage default insurance is
a mandatory premium lenders place on mortgages with a LTV higher than 80%.
There are now three Mortgage Insurers in Canada that allow Canadians the
dream of Home Ownership.
Canada Guaranty
has created an Innovative suite of Mortgage Insurance (MI) products that
will provide homeowners and mortgage professionals alike with the
Flexibility and Choice they want and need.
CMHC is Canada's
largest default mortgage insurer. Mortgage loan insurance helps protects
lenders against mortgage default, and enables consumers to purchase homes
with as little as 5% down payment
Genworth
is an equal to the above two insurers. If you are
purchasing or refinancing a home with a home with a LTV of 80% or more, the
mortgage must be insured. This insurance protects the lender against
borrower default, and enables them to give you mortgage financing for the
purchase of a home with a small down payment.

