Mortgage loan insurance protects your lender against default. If your mortgage exceeds 80% of the property’s value, your lender will likely require this insurance from CMHC or a private company. This insurance mitigates the lender’s risk, allowing you to secure a mortgage with a smaller down payment. It ensures that the lender is covered if you fail to repay the loan, making homeownership more accessible while safeguarding the lender’s investment.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*