Serving All Of Ontario, Canada

Mortgage Glossary

Mortgage Default Insurance

Mortgage default insurance, often referred to as CMHC insurance or default insurance which only protects the lender in the event of a borrower defaulting on their mortgage, most commonly done by missing mortgage payments.

Mortgage default insurance shouldn’t be confused or mixed with creditor insurance, life insurance, disability insurance, or property/home insurance. Those are different types of insurances that apply to different things.

There are three mortgage default insurers which lenders obtain mortgage default insurance from; Canada Mortgage and Housing Corporation (CMHC), Genworth Insurance, and Canada Guaranty.

Mortgage default insurance is payable by a borrower, by means of the mortgage default insurance premium being added on top of their principal mortgage balance, and is paid as one with their mortgage payment, only when the borrower purchases a property with less than 20% down payment, and 35% if self employed.