Mortgage default insurance provided by the Canada Mortgage and Housing Corporation (CMHC) — or private insurers Sagen or Canada Guaranty — required on all federally regulated mortgages in Canada where the down payment is less than 20% of the purchase price. The premium is calculated as a percentage of the mortgage amount (0.60%–4.00% depending on LTV) and is typically added to the mortgage balance rather than paid upfront. CMHC insurance protects the lender, not the buyer, in case of default.
Synonyms:
mortgage default insurance|high-ratio insurance|CMHC mortgage insurance