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Insurance Premiums
 January 19 2016     Posted by Siemens Group

The Bank Act requires that a lender not exceed a loan of 80% of Lending Value unless the loan is insured through an insurer. Currently, the three mortgage insurers in Canada are CMHC, Genworth and Canada Guaranty. These insurers insure the mortgage on behalf of the mortgage lender so that if you default on your mortgage the lender's loan will be paid out. The Borrower pays for the insurance premium, and typically the insurance premium is added to the mortgage. The insurance premium depends on your loan to value and type of program used to qualify the mortgage.

Example of Standard Premiums

LTV Ratio

Insurance Premium

up to 65%

0.50% of mortgage


0.65% of mortgage


1.00% of mortgage


1.75% of mortgage


2.00% of mortgage


2.75% of mortgage


Extended Amortization

Add 0.20% per five year extension with Extended Amortization from 25 to 35 years.  Premiums are higher for self-employed individuals who aren't able to provide standard confirmation of their income.

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