Mortgages

Insured Vs. Conventional

Canadian mortgages vary based on their loan-to-value or simply put, the percentage of the down payment. The home is an asset, securing the mortgage loan. The more that is owed relative to its value will dictate what type of mortgage is needed.

In the eyes of the bank, it's all about risk. Among other variables, such as Credit Scores and Income, the main factor is the properties loan-to-value. In fact, with a large down payment, a homebuyer with a low credit score will have the opportunity to purchase.  However, not every buyer will have a large down payment at their disposal. 

This is where the National Housing Act allows for a purchase with a lower down payment, as low as 5% of the purchase price. In order to achieve this, the mortgage must be insured to alleviate the risk from the bank, with the insurance premium passed onto the homeowner.

There are many differences between an Insured and a Conventional mortgage. The policies surrounding these are constantly changing, and there are also variations of each, depending on the bank. Here are some of the highlights of each.

Insured
Conventional

Most Popular

Insured
Mortgage
5.00%Down Payment/Equity

This option allows prospective homeowners to purchase with a low down payment by insuring the mortgage and reducing the bank's risk.

  • CMHC, Sagen or Canada Guaranty Insured

  • Lowest Down Payment Option

  • Access to Lowest Rates

  • Energy Efficiency Rebate Available

  • Portable, Stays with the Mortgage

  • 4.00%* Premium Rolled into Mortgage

*Premium is subject to change based on the source of down payment.

Insured
Mortgage
10.00%Down Payment/Equity

This option allows prospective homeowners to purchase with a lower down payment and reduced insurer permium.

  • CMHC, Sagen or Canada Guaranty Insured

  • Low Down Payment Option

  • Access to Lowest Rates

  • Energy Efficiency Rebate Available

  • Portable, Stays with the Mortgage

  • 3.20%* Premium Rolled into Mortgage

Insured
Mortgage
15.00%Down Payment/Equity

This option allows prospective homeowners to purchase with a lower down payment and reduced insurer permium.

  • CMHC, Sagen or Canada Guaranty Insured

  • Low Down Payment Option

  • Access to Lowest Rates

  • Energy Efficiency Rebate Available

  • Portable, Stays with the Mortgage

  • 2.80% Premium Rolled into Mortgage

Mortgages

Products & Options

There are a wide variety of mortgage products. Some of these options vary by lender, while others are dependant on the type of mortgage, as mentioned above. Here is a list of various mortgage options available when your purchase, renew or refinace.

Low-Down Payment

This product provides qualified borrowers with an opportunity to own a home with as little as a 5% down payment.

Purchase Plus Improvements

A unique mortgage product that allows qualified borrowers to make their new home just right for them, with tailored improvements, immediately after taking possession of the purchase property. Including these costs within their mortgage.

Cash Back Mortgage

A special mortgage product that allows qualified borrowers with strong credit to take a lump sum of cash, between 1-5%, out upon closing. Certain conditions may apply.

Self-Employed Borrowing Program

This program is designed for self-employed borrowers who do not have a traditional source of income. This allows eligible borrowers with limited documentation to obtain a mortgage with a 10% down payment.

New Construction Program

A multi-stage program designed for those looking to build a custom home.

Home Equity Line of Credit (HELOC)

A HELOC lets you leverage your home's equity which allows the homeowner access up to 80% of the home's equity at any time.

Borrowed Down Payment Program

This program helps make it possible for a qualified borrower with strong credit to the borrower the 5% needed to purchase a home.

Family Plan Program

This program enables people to help buy a home for immediate family members with as little as 5% down payment.

Investment Property

This allows qualified borrowers to purchase a rental property with as little as a 20% down payment.

Vacation Home

A vacation home, second home, or cabin. This product allows qualified borrowers to purchase a second property with an affordable monthly payment with 5% down payment.

Spousal/Equity Buyout Program

A unique mortgage product allows one party to buy out the other party's interest in an existing mortgage. This may apply during a divorce or buying out one's interest in the jointly owned property.

Interest Only Mortgage

A mortgage product where interest-only payments are made. Low payments free up cash flow for other purposes—for example, those who want to access cash for other investment opportunities.

New-To-Canada Program

Qualified homebuyers who have immigrated or relocated to Canada within the last 5 years are eligible to purchase property with as little as a 5% down payment.

Private Mortgage

A short-term solution, when a borrower experiences a cash-flow disruption. This may include a CRA balance, land purchase, or new construction.

Reverse Mortgage

Mortgage Rates

Fixed Vs Variable

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