High Ratio Mortgage

What is a High-Ratio Mortgage In Canada?

A high-ratio mortgage applies to people that have less than 20% of a down payment to put towards the purchase of a home. In these cases, you must qualify for mortgage default insurance Canada Mortgage Housing Corporation (CMHC).

You can qualify for up to 95% of your home’s value based on the following criteria:

•    Employment
•    Credit score
•    Amortization (25 years)

The cost of the insurance premium (a fee) is incorporated into your mortgage payments and varies based on your down payment:

•    With a down payment of 5% – 9.99% your premium is 2.75% of your mortgage amount
•    With a down payment of 10% – 14.99% – your premium is 2.00% of your mortgage amount
•    With a down payment of 15% – 19.99% – your premium is 1.75% of your mortgage amount
•    The insurance premium is also subject to PST and must be paid at time of closing

How does this benefit you?

High-Ratio mortgages allow first-time home buyers the opportunity to own a home assuming they have good credit and steady income; but do not have a big down payment  available.

More info: Canada Mortgage and Housing Corporation


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Fixed Rate Mortgages Rates
1 year 3.20%
2 years 3.30%
3 years 3.40%
4 years 3.50%
5 years 3.60%
Variable Rate Mortgages Rates
Open (1, 2, 3 years) 3.20%
Closed 2.70%
Home Equity Line of Credit Rates
Home Equity Line of Credit 3.60%