By now you’ll have probably heard something about Mortgage Default Insurance. This is the Government sponsored insurance that makes it less risky for Banks to give mortgages. This insurance must be purchased by the lender for mortgages where the client has a small down payment (less than 20% of the property value), commonly known as High Ratio mortgages. It can also be purchased for Conventional Mortgages where the Borrower holds greater than 20% in equity in the property. This insurance is provided through CMHC and to a lesser extent Genworth and Canada Guarantee. Continue reading →