Down Payment and Default Insurance

Down payment language and default insurance language are tightly linked in Canada. This section explains how the size of a down payment affects insurance requirements, product labels, and lender conversations.

Use This Section When

• you need to know how much cash is required up front
• you are hearing insured, high-ratio, premium, or CMHC language
• you want to understand why the lender treats a smaller down payment differently
• you are trying to separate mortgage default insurance from other insurance products

Start Here

• Minimum Down Payment
• Mortgage Default Insurance
• Mortgage Insurance Premium
• High-Ratio Mortgage
• Insured Mortgage
• CMHC

Common Reader Paths

• “How much do I need before the lender will look at the deal?”: Minimum Down Payment
• “Why is insurance being added to this mortgage?”: Mortgage Default Insurance, Mortgage Insurance Premium
• “Is high-ratio the same as insured?”: High-Ratio Mortgage, Insured Mortgage, CMHC

Why This Section Matters

Borrowers often mix up homeowner insurance, life insurance, and mortgage default insurance. These pages focus on the insurance that protects the lender when a mortgage is insured because the down payment is below the conventional threshold.

Continue to Nearby Sections

• Use Qualification and Stress Test when the next question is affordability or lender documentation.
• Use Closing Costs and Closing Process when the next question is total cash to close.

In this section

• Minimum Down Payment
  Current Canada-first explanation of minimum down payment rules and how they affect mortgage insurance and eligibility.
• Mortgage Default Insurance
  What mortgage default insurance means in Canada, when it is required, and why it protects the lender rather than the borrower.
• Mortgage Insurance Premium
  What a mortgage insurance premium means in Canada and how the cost is typically added to the mortgage balance.