06/09/2026
What is the difference between Conventional and Insured (High Ratio) Mortgages?
A mortgage with less than 20% down payment is known as an insured mortgage and one with 20% or more down payment is known as a conventional mortgage.
Mortgage loan insurance lets you get a mortgage for up to 95% of the purchase price of a home. It also ensures you get a reasonable interest rate, even with your smaller down payment.
If the home costs $500,000 or less, you’ll need a minimum down payment of 5%.
If the home costs more than $500,000, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remainder.
If the home costs $1,500,000 or more, mortgage loan insurance is not available.
You pay an insurance premium on mortgage loan insurance. It’s calculated as a percentage of the mortgage amount and is based on the size of your down payment. You can pay it in a lump sum or add it to your mortgage and include it in your payments.
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