Glossary · Financing
What is Mortgage default insurance?
Mortgage default insurance protects the lender if a borrower can't repay, and is usually required when the down payment is under 20%.
Definition
Also known as: CMHC insurance, Mortgage insurance
When you buy with less than a 20% down payment, lenders typically require mortgage default insurance. It protects the lender — not you — but it's what allows buyers to purchase with a smaller down payment.
The premium is based on your down payment size and is usually added to your mortgage. A larger down payment can reduce or eliminate it.
When mortgage default insurance matters
- Buying with a smaller down payment
- Understanding the true cost of your mortgage
- Weighing a larger down payment
With Homeprint
How Homeprint helps with mortgage default insurance
Homeprint keeps your mortgage documents and costs organized so you always understand the full picture.
- Keep every related document in one secure place
- Track your home's value and finances over time
- Stay connected with trusted neighbourhood experts
Mortgage default insurance — FAQ
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