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Insured Mortgage
- Required when the down payment is less than 20%
- Must be for owner-occupied properties under $1.5 million
- Backed by mortgage default insurance (CMHC, Sagen, or Canada Guaranty)
Insurable Mortgage
- Not insured by the lender, but meets insurance guidelines
- Typically has 20%+ down payment and qualifies under set rules
- Can receive better rates due to reduced lender risk
Uninsurable Mortgage
- Does not meet insurer guidelines
- Includes properties over $1.5 million, refinances, rentals, or extended amortizations
- Often comes with higher interest rates
Conventional Mortgage
- 20% or more down payment
- Not subject to mortgage insurance requirements
High-Ratio Mortgage
- Less than 20% down payment
- Must be insured (same as “insured mortgage” above)
Open Mortgage
- Flexible prepayment options
- Typically higher interest rates
- Ideal if planning to pay off early or refinance soon
Closed Mortgage
- Lower rates but limited prepayment ability
- Early payout may involve penalties
- Common for fixed-term planning
Fixed-Rate Mortgage
- Interest rate stays the same for the term
- Predictable payments
Variable-Rate
- Rate fluctuates with the prime rate
- Potential savings if rates drop
