Real Estate Lingo: Conventional vs High Ratio

What’s the difference between a conventional mortgage and a high ratio or a default-insured mortgage?

A conventional mortgage is for a client who will put down 20% of a down payment on the purchase price.

A high ratio mortgage is when you have less than 20%. And that mortgage does need to get approved through a defaulting insurer company within Canada as a requirement.

We have three available insurers in Canada that we look at.

Typically, we’ll look at CMHC in most cases, but we have two other providers. We can also reach out and get approval through them.

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