We help homeowners find the right mortgage insurance in Canada that fits their budget and future goals.
At PolicyPlace, we understand that buying a home is one of life’s biggest financial decisions. That’s why we help you protect it with the right mortgage insurance—so that even if life takes an unexpected turn, your home doesn’t have to.
Mortgage insurance is a type of financial safety net. It benefits both the lender and the borrower by reducing risk when a buyer puts down less than 20% of the property’s value.
If the borrower defaults on the loan or passes away, mortgage insurance covers the lender’s losses.
It also enables borrowers to qualify for mortgages with smaller down payments, making homeownership more accessible.
Especially in cities like Toronto, Vancouver, or Calgary—where home prices are high—mortgage insurance helps more families move in with less upfront cost.
When your down payment is below 20%, most lenders require mortgage insurance. It’s included in your monthly mortgage payments and helps cover part of the unpaid balance if you can’t make payments.
As the loan-to-value (LTV) ratio improves over time, the need for mortgage insurance may go away. But until then, it protects the bank—and gives you a shot at your dream home.
If your down payment is under 20%, mortgage insurance is usually mandatory.
Some loan types (FHA, USDA, or high-ratio loans) may require it based on coverage rules of conventional lenders.
A better credit score can lower your premium—so eligibility is not one-size-fits-all.
Lenders look at how much debt you have compared to your income. A lower DTI = better chance.
Stable income and steady work history also affect your eligibility.
Different property types (house, condo, multi-unit) may need different insurance levels.
Each mortgage lender sets their own rules, depending on the mortgage type or risk.
Ownership: You own the policy
Beneficiary: You choose who gets the payout
Portability: Stays with you, even if you switch homes or lenders
Flexibility: You can increase or reduce coverage
Premiums: Often based on your health and age
Control: You make changes anytime
Ownership: The lender owns the policy
Beneficiary: The bank gets the payout
Portability: Often not transferable if you move or switch banks
Premiums: May rise with age or balance
Control: Limited changes allowed
Coverage: Drops as the loan is paid down
Mostly when your down payment is under 20%. Aligns with your ability to submit lower down payments and still proceed.
If your loan is through the Federal Housing Administration, MIP is mandatory to reduce lender overall exposure.
Issued by the U.S. Department of Agriculture. It supports rural and low-income buyers across geographic zones.
For Canadian veterans using VA-backed programs for a loan, it pays the one-time right-to-use fee.
This lessens early premiums, but you may get a higher interest rate. You won’t pay monthly insurance, but your mortgage rate may increase long term.
Mortgage insurance helps a lender offset the potential losses against loans if a borrower defaults on their mortgage. It enables borrowers to obtain mortgages through a down payment of less than 20% of the home’s value.
Insurance is required by lenders when borrowers make down payments of less than 20% on a home purchase. It reduces the lender’s risk and keeps loan and borrower affordable and accessible.
Borrowers typically pay for mortgage insurance as part of their monthly mortgage payment. The cost of mortgage insurance depends on factors such as the loan amount, down payment percentage, and type of mortgage.
For conventional mortgages, insurance must be paid until loan-to-value (LTV) reaches 80%. For others, the lender requires premium payments for set terms or based on fixed qualification timelines.
As home equity rises or conventional loans are considered, some borrowers are eligible to cancel mortgage insurance (usually after 20% equity). FHA mortgage insurance remains for the term unless refinanced. We help review your profile to see if and when cancellation is possible.
In some countries, mortgage insurance (like PMI or MIP) may be tax deductible for eligible borrowers. Tax deductibility varies. For Canada, borrowers should consult with a tax advisor for specific guidance.
