1. Products Vary
Among Canada’s
Three Insurers

2. In Canada, if you take out a
mortgage with less than 20%
down payment, it is considered
high ratio and must be insured
against default through one of
the following: Canada Mortgage
and Housing Corporation (CMHC),
a crown corporation mandated to insure a
variety of mortgage loan products, and Canada
Guaranty or Genworth Financial – private sector
providers of mortgage insurance.

3. The following example demonstrates the
differences for self-employed individuals:

4. Private Sector Providers: Genworth
Financial and Canada Guaranty
• Borrower must have a proven two-year history of
managing his or her credit and be in business for
two years, minimum.
• Borrower is required to declare his or her annual
income.
• They will insure only up to 90%, meaning a 10%
down payment, 5% of which can be gifted.
• Borrower must also show no tax arrears on a
Notice of Assessment.

5. CMHC
• Borrower must be self-employed less than three
years.
• They will insure only up to 90%; gifted funds are
not allowed.
• Borrower must have at least two years’ industry
experience outside self-employment and show
no tax arrears.
• Not all lenders use every insurer. Your mortgage
professional will place you with the lender whose
insurer meets your criteria.

6. Randy Bett
www.BetterGroupRealEstate.ca