5.4.3 Protecting your mortgage

What happens if you lose your job or get injured and can't keep up the payments on your mortgage? Would you be forced to give up your mortgage and sell your home? Insurance helps you manage the risk of losing your home.

There are four main types of mortgage insurance—one protects the lender, and three protect you.

Insurance that protects the lender

Mortgage value
Mortgage value Standard premium % of loan amount*

Up to and including 65% of property value


Up to and including 75% of property value


Up to and including 80% of property value


Up to and including 85% of property value


Up to and including 90% of property value


Up to and including 95% of property value


Non-traditional sources of down payment**


*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

** Down payment requirements:

  • Traditional sources of down payment include: applicant’s savings, Registered Retirement Savings Plan (RRSP) withdrawal, funds borrowed against proven assets, sweat equity (that is, when the buyer contributes work instead of money, which can be up to 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency). 
  • Non-traditional sources of down payment include: any source that is arm’s length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts, 100% sweat equity, lender cash-back incentives.

Insurance that protects the homeowner

For more information about insurance in general, see the module on Insurance.

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