Mortgage Insurance and Interest Rate Tiers

Did you know that there are three tiers for interest rates in Canada?

Even more surprising, the best interest rates are saved for people who have insured mortgages, with less than 20% down. With government guarantees and little risk of losing money, lenders can offer mortgages at rock bottom rates. 

3 Tiers: Insured, Insurable, & Uninsurable 

From our Home Buyers’ Mortgage Guide on Page 8, the Canadian mortgage industry used to be simpler with more uniform rates. However, since 2016, the government created rules and regulations for government guarantees for mortgages that are not insured, but are insure-able.

An insured mortgage is where the borrower pays for mortgage insurance. Insurable mortgages are when a mortgage “can” be insured but the lenders pay the insurance instead of the client. Uninsurable mortgages cannot have any insurance. 

The chart below outlines the three interest rate tiers. 

When you do end up getting your own mortgage, we’ll be providing you a choice for best rates and best mortgage terms from one or more of the three tiers above.

Here to help with any questions – please don’t hesitate to call or email 🙂

Warmest Regards, 

Eitan Pinsky