Every Canadian mortgage falls into one of three insurance categories, and the category affects the rate a lender offers. An insured mortgage has default insurance that the borrower pays for, because the down payment is under 20%. An insurable mortgage has 20% or more down but still meets the federal criteria for insurance, so the lender can insure it in bulk at its own cost. An uninsurable mortgage can’t be insured at all. This guide explains what puts a mortgage in each category and how each is priced. It is part of our mortgage types hub.
The three categories at a glance
| Insured (high-ratio) | Insurable | Uninsurable | |
|---|---|---|---|
| Down payment | Less than 20% | 20% or more | Usually 20% or more |
| Who pays for insurance | The borrower, through a premium | The lender, if it chooses to insure | No insurance is possible |
| Purchase price or value | Below $1.5 million | Below $1,000,000 | Any |
| Longest amortization | 25 years, or 30 for first-time buyers and new builds | 25 years | Set by the lender |
| Loan purpose | Buying a home | Buying a home, or switching an existing insurable mortgage | Anything, including refinancing |
| Typical rate | Usually the lowest | Usually between the other two | Usually the highest |
Insured mortgages (high-ratio)
A high-ratio mortgage is one where the loan is more than 80% of the home’s value, which means a down payment of less than 20%. Federally regulated lenders must insure these loans, so a high-ratio mortgage is always an insured mortgage. The borrower pays a one-time premium, usually added to the mortgage; what CMHC insurance costs shows the premium in dollars, and the CMHC insurance calculator works it out for your numbers.
To be insured, a high-ratio mortgage has to meet the federal criteria for insured loans, including:
- a purchase price below $1.5 million;
- an amortization of no more than 25 years, or 30 years if a borrower is a first-time buyer or the home is newly built (30-year amortization rules);
- a home the borrower (or a close relative) will live in;
- a credit score that meets the insurer’s minimum (see below);
- debt service ratios within the insurer’s limits, tested at the stress-test qualifying rate (see GDS and TDS ratios and the stress test).
For a CMHC-insured purchase, at least one borrower or guarantor needs a credit score of 600 or more; CMHC may use other ways to judge creditworthiness for a borrower with no credit history. The minimum down payment is 5% of the first $500,000 and 10% of the rest for homes under $1.5 million, and 20% at $1.5 million or more. The CMHC mortgage rules set out the full criteria, and the minimum down payment calculator works out the minimum for a given price.
Insurable mortgages
An insurable mortgage has 20% or more down, so the borrower pays no premium, but it still meets the federal criteria for a “low ratio” insured loan. The lender can then buy portfolio (bulk) insurance on it, which lowers the lender’s risk and lets it fund the loan more cheaply. The main criteria are:
- the loan is for buying the home, or replaces an earlier insurable mortgage (a switch at renewal);
- the amortization is no more than 25 years;
- the home is worth less than $1,000,000;
- the same credit score and debt service tests as an insured loan;
- a single-unit home is occupied by the borrower or a close relative.
The insurable price limit is separate from the $1.5 million cap that applies to high-ratio insured mortgages: a home priced at $1,000,000 or more with 20% down is uninsurable.
Uninsurable mortgages
A mortgage that can’t meet the insurance criteria is uninsurable, and the lender carries all of the default risk. Common reasons:
| Reason | Example |
|---|---|
| Amortization over 25 years with 20% or more down | A 30-year amortization on a conventional purchase |
| Home worth $1,000,000 or more with 20% or more down | A $1.2 million purchase with 20% down |
| Price of $1.5 million or more | A million-dollar home at $1.5 million or above, which needs 20% down |
| A refinance that takes out equity | Borrowing against the home to renovate or consolidate debt |
| A rental property the owner won’t live in | See rental property mortgages |
A mortgage with 20% or more down is also called a conventional mortgage; depending on the criteria above, a conventional mortgage can be either insurable or uninsurable.
How the category affects your rate
Insured mortgages can be pooled into government-guaranteed NHA mortgage-backed securities, one of the cheapest ways for a lender to fund a loan, and the lender bears no default risk on them (see mortgage-backed securities in Canada). That is why insured mortgages usually get the lowest rates, insurable mortgages come next, and uninsurable mortgages are usually priced highest.
Bank of Canada data shows the gap on new 5-year fixed mortgages: in July 2026, the average rate on new insured mortgages was 4.05%, against 4.49% on new uninsured mortgages, so the insured rate was 0.44 percentage points lower. For current offers by category, see our mortgage rates page.
Classifying common scenarios
| Scenario | Category |
|---|---|
| $500,000 home, 5% down, 25-year amortization | Insured |
| $600,000 home, 10% down, 30-year amortization, first-time buyer | Insured |
| $500,000 home, 20% down, 25-year amortization | Insurable |
| $500,000 home, 20% down, 30-year amortization | Uninsurable (amortization over 25 years) |
| $1.2 million home, 10% down | Insured (below $1.5 million) |
| $1.2 million home, 20% down | Uninsurable (worth more than $1,000,000) |
| $1.6 million home, 20% down | Uninsurable (price of $1.5 million or more) |
| Refinancing to take out equity | Uninsurable |
| Rental property you won’t live in, 20% down | Uninsurable |
What each costs overall
A lower rate doesn’t make the insured route cheaper overall, because the premium is added to the balance. Comparing a $500,000 purchase three ways, with hypothetical rates in the usual order:
| Insured (10% down) | Insurable (20% down) | Uninsurable (20% down, 30 years) | |
|---|---|---|---|
| Mortgage before premium | $450,000 | $400,000 | $400,000 |
| Premium | $13,950 | $0 | $0 |
| Rate | 4.29% | 4.39% | 4.59% |
| Amortization | 25 years | 25 years | 30 years |
| Monthly payment | $2,514 | $2,189 | $2,038 |
| Total interest over the amortization | $290,236 | $256,849 | $333,629 |
| Premium plus interest | $304,186 | $256,849 | $333,629 |
In this example the insurable mortgage costs the least overall: no premium and a smaller balance. The insured mortgage has the best rate but the premium and the larger loan outweigh it, and the uninsurable 30-year mortgage has the lowest monthly payment and the most interest. The 25 vs 30-year amortization comparison looks at that last trade-off in detail.
Switching lenders at renewal
| Category | Switching at renewal |
|---|---|
| Insured | The insurance moves with the mortgage, so lenders can compete for it at insured rates |
| Insurable | A new lender can insure it in bulk if it still meets the criteria |
| Uninsurable | Fewer lenders may compete for it, which can mean fewer renewal options |
Which category fits
| Situation | Category it falls into | Trade-off |
|---|---|---|
| First-time buyer with limited savings | Insured (5% to 19.99% down) | In the market sooner at a low rate, but pays a premium |
| 20% saved, home worth less than $1,000,000, 25-year amortization | Insurable | No premium and a smaller loan |
| Wants the lowest required payment with 20% down | Uninsurable (30-year amortization) | Lower payment, more total interest |
| Home priced at $1.5 million or more | Uninsurable | The only option |
Related articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and October 2, 2026. How we check facts.
- Bank of Canada: Mortgage rates, fixed 5 years and over: uninsured residential mortgages, funds advanced (data series)
- Bank of Canada: Mortgage rates, fixed 5 years and over: insured residential mortgages, funds advanced (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Conventional 5-year mortgage rate (data series)
- Bank of Canada: Data table
- CMHC: CMHC Purchase
- CMHC: Home Start
- Department of Finance Canada: Boldest mortgage reforms in decades come into force today
- Financial Consumer Agency of Canada: How much you need for a down payment
- Justice Laws (Canada): Bank Act
- OSFI: Residential mortgage underwriting practices and procedures