It’s a lifestyle choice.

Let’s start with the basics: a mortgage is a loan you take out to buy property. It’s a way of purchasing a home without paying the full value immediately.

There are many different types of mortgages. The two basic types of mortgages are Conventional Mortgage and High Ratio Mortgage.

But choosing a mortgage isn’t just a financial choice – it’s a lifestyle choice.

If you can’t afford the 20% down payment for a conventional mortgage, a High Ratio Mortgage allows for a smaller down payment so you can own a home – and you can own it now.

In Canada, mortgage insurance is required under Bank Act Law for those making less than a 20% down payment on a property. So if you purchase a home with a High Ratio mortgage, you will pay mortgage default insurance.

Mortgage default insurance is a win-win situation for both homebuyers and lenders. Lenders rely on mortgage default insurance to protect themselves from financial losses in case a loan is not repaid. Because lenders have this protection, they are able to offer loans with very small down payments, provided credit requirements are met. This means you can get access to homeownership earlier at the lowest cost, and with a small downpayment. It also means you will begin to build equity in your home sooner.

  • For many people, the hardest part of buying a home is saving enough money for a down payment. The bigger the down payment, the smaller the amount of your mortgage loan. If you've arrived in Canada within the last 36 months or less, you may qualify for Genworth's New To CanadaTM product,…
  • When looking to buy your first home, the size of your down payment will help determine which mortgage option is best suited for you.
  • Review our handy mortgage glossary of common phrases that newbie buyers need to know. Here’s an A-Z guide to the key mortgage speak you’ll be using in the weeks and months to come...
  • A conventional mortgage in Canada normally requires a down payment of at least 20% of the purchase price. When homebuyers have less than 20% for a down payment, Mortgage Insurance allows them to secure a mortgage for their home purchase.
  • It’s often the largest purchase canadians will make, but many enter into the great adventure of homeownership without completing the proper financial homework.
  • Cover your assets with the right insurance. You’re not only protecting your home and contents, you’re protecting your financial future and your standard of living. Here are three types of insurance homeowners need to consider.

Achieve the homeownership dream sooner