Securing the right mortgage is crucial when purchasing your dream home. As the #1 mortgage
broker in Canada, Dave is here to guide you through the process. Whether you’re a first-time
home buyer or a seasoned homeowner, Dave and his team offer personalized solutions tailored
to your unique needs and financial goals.
Available for purchases with 5% to 19.99% down payment and a maximum price of $1,500,000
Available for purchase or refinance with 20%+ down payment (or equity) and no maximum price
In Canada, if you are applying for a mortgage with less than 20% down payment, the Government has mandated that all banks, credit unions, and monoline mortgage lenders obtain mortgage default insurance (MDI) from one of only three approved MDIs in the country; CMHC, Canada Guarantee and Sagen. This default insurance is there to protect the mortgage lender if you default on the mortgage and the lender, incurring a capital loss. The cost of this insurance depends on the percentage of down payment and is applied as a premium to your approved mortgage amount. Although there is the added cost of this premium, insured mortgages are the leading option for homebuyers with a down payment of 5% to19.99% of their purchase price. These insured mortgages provide lenders with added protection against default, helping the Canadian banking system stay healthy, but at the same time making it easier for you to qualify for a mortgage with a lower down payment.
With an Insured mortgage, you can purchase a home with as little as 5% down, making homeownership more accessible, especially for first-time buyers.
Insured mortgages typically offer the most competitive interest rates, as compared to conventional mortgages (since the mortgage is insured, the lender is not taking as much risk and therefore the interest rate reflects this).
Insured mortgages come with all the regular flexible repayment options as a conventional mortgage, allowing you to choose a mortgage term and payment schedule that fits your budget and financial situation.
By providing lenders with mortgage insurance, this reduces their risk of financial loss in the event of borrower default, making it easier for them to approve your mortgage application.
*Based on 25-year amortization
*Add 0.2% for 30-year amortizations
Down Payment:
15% to 19.99%
2.80%
Down Payment:
10% to 14.99%
3.10%
Down Payment:
5% to 9.99%
4.00%
Conventional mortgages are ideal for homebuyers who have a down payment of 20% or more of their purchase price. These mortgages do not require mortgage insurance and offer greater flexibility and savings over the life of the loan. The mortgage lender is taking on the full risk of the loan without insurance and therefore is not tied to specific rules set on to them by the mortgage default insurer. This typically leads to lenders allowing you a longer amortization, and at times being able to make ‘common-sense’ underwriting decisions during the application process.
With a down payment of 20% or more, you can avoid paying mortgage insurance premiums, saving you money on your monthly mortgage payments.
Because there is no mortgage insurance to constrict application decisions, lenders can look at your file with a more common-sense approach. This includes approving applications with higher debt service ratios compared to insured mortgages.
Conventional mortgages open a wider range of options within your mortgage, such as longer amortizations, which can help to lower your mortgage payments and help to get higher mortgage pre-approvals.
Unlike insured mortgages, which are not available on properties priced over $1,500,000, conventional mortgages have no maximum limit on the purchase price of a home.
By putting down a larger down payment, you’ll have more equity in your home from the outset, giving you greater financial stability and flexibility in the long run.
Explore our diverse range of mortgage calculators designed to simplify your home financing
journey. Each of these calculators are user-friendly and designed to empower you with the
information you need to make informed decisions. Start planning your financial future today!
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