Mortgage Blog

Your Complete Guide to a CMHC Insured Mortgage in Burlington

April 29, 2026 | Posted by: Matt Shepherd

Understanding the High-Ratio Insured Mortgage

When purchasing a home in Burlington or the surrounding areas, many first-time buyers and seasoned homeowners alike encounter the term high-ratio insured mortgage. Simply put, if your down payment is less than 20 percent of the home purchase price, you are required by Canadian law to obtain mortgage default insurance. This is commonly referred to as a CMHC insured mortgage.

While the Canada Mortgage and Housing Corporation (CMHC) is the most well-known provider, there are actually three main providers of this insurance in Canada:

• CMHC: The federal crown corporation that sets many of the standard guidelines.
• Genworth (now Sagen): The largest private residential mortgage insurer in Canada.
• Canada Guaranty: Another leading private mortgage insurance provider offering competitive products.

Whether it is a CMHC, Genworth, or Canada Guaranty policy, the purpose remains the same. The insurance protects the lender in case of default, which in turn allows lenders to offer you lower interest rates despite the smaller down payment.

How CMHC, Genworth, and Canada Guaranty Work

Securing a high-ratio mortgage means you will need to pay an insurance premium. This premium is calculated as a percentage of your total loan amount and is typically added directly to your mortgage balance, meaning you do not have to pay it upfront in cash. The exact premium rate depends on the size of your down payment. The larger your down payment, the lower your insurance premium will be.

It is important to understand how this compares to a low-ratio uninsured mortgage, where a down payment of 20 percent or more removes the legal requirement for this insurance entirely. However, building a 20 percent down payment in today's Burlington real estate market can be challenging. A high-ratio insured mortgage provides a vital pathway to homeownership by allowing you to buy a home with as little as 5 percent down.

We are experts at providing second opinions on high-ratio insured mortgages. If you have been pre-approved elsewhere, letting an experienced Burlington mortgage broker review your file can uncover better rates or more favorable terms.

Why Get a Second Opinion on Your High-Ratio Mortgage?

Not all mortgages are created equal. Even if two lenders offer a CMHC insured mortgage at the same interest rate, the underlying terms, prepayment privileges, and penalty calculations can vary wildly. This is why getting a second opinion is crucial.

As a Principal Broker at TLC Mortgage Group, Jason Woods has access to over 40 lenders. This means we can shop the market to ensure your high-ratio mortgage fits your specific financial goals. Whether you are a first-time buyer in Hamilton, Oakville, or Burlington, professional mortgage advice is the best place to start.

Compliance Notice: Jason Woods is a Principal Broker with TLC Mortgage Group, License #12988. Proudly serving Burlington, ON, and surrounding areas at 1100 Burloak Dr, Burlington, ON L7L 6B2.

Q1: What is a CMHC insured mortgage?

A CMHC insured mortgage is a home loan where the buyer provides a down payment of less than 20 percent. Canadian law requires mortgage default insurance for these loans to protect the lender, which can be provided by CMHC, Sagen (formerly Genworth), or Canada Guaranty.

Q2: Do I have to pay the mortgage insurance premium upfront?

No, the insurance premium for a high-ratio mortgage is typically added to your total mortgage loan amount and paid off gradually as part of your regular monthly mortgage payments.

Q3: Can I avoid paying for mortgage default insurance?

Yes, you can avoid this premium by saving a down payment of 20 percent or more, which qualifies you for a low-ratio uninsured mortgage.

Q4: Why should I get a second opinion on my high-ratio insured mortgage?

We are experts at providing second opinions on high-ratio insured mortgages. A second look ensures you are getting the most competitive interest rate and the best mortgage terms available from over 40 different lenders, potentially saving you thousands of dollars over the life of your loan.

Q5: What is the minimum down payment required in Burlington, ON?

The minimum down payment is 5 percent for the first $500,000 of the purchase price, and 10 percent for any amount between $500,000 and $999,999. Homes priced at $1 million or more require a minimum 20 percent down payment and do not qualify for a high-ratio insured mortgage.

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