The Victoria B.C. Mortgage Blog

Designing a Mortgage That's Right For You!

What is mortgage loan insurance?
January 21, 2015 @ 3:39 PM by: The Mortgage Designers

Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 80%. The insurance premiums, ranging from .50% to 3.75%, are paid by the borrower and can be added directly onto the mortgage amount. This is not the same as mortgage life insurance.