Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated September 9, 2026
Updated May 2026. Your original down payment determined whether your mortgage is insured or conventional — and that status follows you for the life of the loan, shaping your rates, lender options, and renewal flexibility.
Default insurance protects the lender — not you — if you default on your mortgage. It is provided by one of three insurers in Canada: CMHC (the federal Crown corporation), Sagen (formerly Genworth), or Canada Guaranty. The insurance premium is typically 2.80% to 4.00% of the mortgage amount and is rolled into the loan balance at origination.
Insurance is mandatory whenever a homebuyer puts less than 20% down at purchase. It is also available on certain refinances and for some portfolio-insured conventional loans that lenders insure in bulk to securitize through the Canada Mortgage Bond program. If you put 20% or more down and your lender did not portfolio-insure your loan, your mortgage is conventional — also called uninsured.
This is the single most important rule to understand: once your mortgage is insured at origination, it remains insured through every straight renewal for the life of the amortization. You do not pay the insurance premium again at renewal — it was a one-time charge. The insurance coverage simply follows the loan from lender to lender or term to term.
This has a major upside. Even if your home has doubled in value and your current loan-to-value (LTV) is well below 80%, your mortgage is still classified as insured for pricing purposes at every renewal. You access the cheaper insured rate tier even though a buyer purchasing your home today with the same down payment would be conventional.
| Term / Type | Best Insured Rate | Best Uninsured Rate | Insured Advantage |
|---|---|---|---|
| 5-year fixed | 4.04–4.14% | 4.24–4.34% | ~20 bps |
| 3-year fixed | 4.09–4.19% | 4.19–4.29% | ~10 bps |
| 5-year variable | 3.30–3.35% | 3.55–3.65% | ~30 bps |
Broker-channel rates, May 2026. Big 5 posted specials are materially higher (RBC 4.29%, CIBC 4.29%, TD 4.59%, BMO 4.51%, Scotia 4.94%). See best renewal rates for live comparisons.
On a $500,000 mortgage over a 5-year term with a 25-year amortization, a 25-basis-point rate advantage (e.g., 3.99% insured vs. 4.24% conventional) saves roughly $70 per month, or $4,200 over 5 years. On a $750,000 balance, those figures grow to $105/month and ~$6,300 over the term. This is the structural advantage of having had less than 20% down at origination — a counterintuitive benefit that compounds with every renewal.
The economics come down to three factors:
Two regulatory shifts have put insured and uninsured borrowers on equal renewal footing:
The short answer: no, not through a straight renewal. Here's what is and isn't possible:
Historically, default insurance in Canada was capped at purchase prices under $1 million — any home over that price required at least 20% down and was automatically conventional. On December 15, 2024, the federal government raised the insured cap to $1.5 million as part of the broader "Boldest Mortgage Reforms in Decades" package (Department of Finance announcement).
This doesn't retroactively affect anyone's existing mortgage — your insurance status is locked at origination. But it does mean that anyone who refinanced into a home purchase between $1M and $1.5M after December 2024 with less than 20% down now has an insured mortgage they couldn't have had before.
An insured mortgage has default insurance from CMHC, Sagen, or Canada Guaranty — typically required when you put less than 20% down at origination. A conventional (uninsured) mortgage is one where the original down payment was 20% or more. At renewal, insured mortgages almost always get the best rates available because monoline lenders specialize in bulk-insuring them.
Yes. Once your mortgage is insured at origination, it remains insured through every straight renewal for the life of the amortization — even if your home has appreciated and your current loan-to-value is now well below 80%. This is a significant advantage because you continue to access lower insured rates at each renewal.
No. Default insurance is only available at the time of purchase (or refinance involving new money under specific limited circumstances). If your mortgage was originated conventionally with 20%+ down, you cannot retroactively insure it at renewal. It will remain a conventional mortgage for the rest of its amortization.
Monoline lenders (First National, MCAP, RMG, Merix) specialize in insured mortgages because they bulk-insure them and securitize the loans through the Canada Mortgage Bond program. Their funding cost is lower, and regulatory capital treatment is more favourable for insured loans. They pass these savings to borrowers as lower rates — often 15–30 basis points below the best conventional rates.
Insured simple renewals and insured straight switches have long been exempt from the prescribed MQR. The November 21, 2024 OSFI change extended a prescribed-MQR exemption to uninsured straight switches (same balance, same amortization, no new money). Guideline B-20 and lender overlays still apply to both.
Not through a straight renewal. Insurance can only be removed by refinancing the mortgage — which triggers a full application, stress test, and new registration. In most cases, this isn't advisable: you lose the lower insured rate premium at renewal, and you'd pay legal and appraisal fees. Insured status is a feature, not a liability.
CMHC / Sagen / Canada Guaranty
How Canada's three default insurers affect your renewal.
Mortgage Insurance at Switch
How CMHC/Sagen/CG insurance transfers (or doesn't) on a switch.
Stress Test at Renewal
When the stress test applies, when it doesn't, and how to pass it.
Switching Lenders at Renewal
How to change lenders at renewal — prescribed-MQR exempt on uninsured straight switches; overlays remain.
First-Time Renewer's Guide
Step-by-step for anyone renewing a mortgage for the first time.
Complete Mortgage Renewal Guide
Everything Canadians need to know about renewing a mortgage in 2026.
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