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What is a high ratio or insured mortgage?

April 26, 2017high insured mortgage ratio

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What is a high ratio or insured mortgage?

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Whenever you need a mortgage loan that is greater than 75.01% LTV it is considered a high ratio or insured mortgage. If you are a first time home buyer then you can borrow up to 95% value and only need to come up with a 5 percent minimum down payment. The Canada Mortgage and Housing Corporation (CMHC) insures the lender in case you default on our loan. You must pay for this insurance premium, up front or you can add it to the mortgage.