Mortgage products
High-Ratio Mortgage
A mortgage where the down payment is less than 20% of the purchase price. Default insurance is required.
A high-ratio mortgage is one with a loan-to-value ratio above 80% — i.e. the down payment is less than 20%. By federal rules, every high-ratio mortgage in Canada must carry default insurance, paid for by the borrower as a one-time premium added to the mortgage principal.
High-ratio mortgages cap at $1.5 million purchase price (after the August 2024 increase from $1 million) and are amortised up to 25 years for most buyers, or 30 years for first-time buyers and new-build purchases. The insurance premium ranges from 2.80% to 4.00% of the mortgage depending on the loan-to-value ratio.
Source: CMHC — Mortgage loan insurance