What is mortgage insurance?

Distinct from mortgage life insurance or home, property, fire and casualty insurance, mortgage insurance provides protection to the lender in the event of a default.

If the amount of the mortgage exceeds 80% of the lending value of the mortgaged property, the mortgage is considered "high ratio". Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage. Mortgage insurance is available from CMHC and GEMICO.