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First Time Homebuyer Question #6

Blog by Diane Cardoso | November 14th, 2011

If I have less than 20% downpayment, do I need mortgage insurance?  Most Lenders require mortgage insurance if you are under 20% for your downpayment.  There are 2 companies in Canada that insure mortgages against default: CMHC or Canada Mortgage and Housing Insurance and Genworth Canada.  There will be a fee to you to pay between .05%-3% on the total amount borrowed.  This 'fee' will be paid back through your mortgage and the fee will added to your total mortgage amount.  This insurance protects the lender in case you default on your mortgage and it is required by law.