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Writer's pictureSolmaz Esmaeili

Unlocking Savings: The Benefits of Uninsured Conventional Mortgages in Canada

An uninsured conventional mortgage in Canada requires a down payment of at least 20% of the home's purchase price, eliminating the need for mortgage default insurance. Key points include:

  • A 20% down payment avoids insurance premiums (e.g., $100,000 on a $500,000 home).

  • These mortgages aren't backed by insurers like CMHC, Sagen, or Canada Guaranty.

  • Lenders view them as less risky due to the higher equity.

  • They may qualify for lower interest rates.

  • Properties over $1 million, refinances, and mortgages with amortizations over 25 years are automatically uninsured.

In summary, an uninsured conventional mortgage offers benefits like no insurance premiums and potentially lower rates due to the 20%+ down payment.

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