High-Ratio Mortgage

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A high-ratio mortgage is one with a loan-to-value of 80% or more, which is to say one with a down payment of less than 20%.

Most high-ratio mortgage are required by law to have mortgage default insurance, which is provided by either CMHC, Canada Guaranty or Genworth. The borrower pays a premium for this insurance.

By comparison, mortgages with more than a 20% down payment are called conventional or low-ratio mortgages.

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