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An “insurable” mortgage is one that has 20% equity or more and meets all other default insurance requirements.

Unlike regular default insurance (a.k.a. “high ratio insurance” and “transactional insurance”) the insurance in this case is paid for by the lender. The lender buys this insurance to lower its funding costs.

That’s a good thing for borrowers because insurable rates are generally lower than uninsured rates at the same loan-to-value.

Insurable mortgages generally require:

  • An owner-occupied property
  • A 25-year amortization or less
  • A property value no more than $999,999.99

Insurable rates apply to purchases and lender switches. You cannot get an insurable rate if you are refinancing.

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