This Page’s Content Was Last Updated: May 2026
This Page’s Mortgage Rates Were Last Updated: May 14, 2026 9:17 PM ET
High-ratio = less than 20% down
Default insurance is required
Rates are often lower than uninsured pricing tiers
You still must qualify under the mortgage stress test
Total cost depends on rate + insurance premium + term + penalty risk
Insured mortgage rates (also called high-ratio mortgage rates) apply when your down payment is less than 20%. In Canada, these mortgages require mortgage default insurance through an approved insurer, which reduces lender risk and often results in more competitive rate pricing than uninsured mortgages.
This page explains how insured mortgages work, what “high-ratio” means, key rules, costs, and how to get the best insured rate strategy through Citadel Mortgages.
A mortgage is considered high-ratio when your down payment is below 20% (meaning the mortgage is more than 80% of the home’s value). In Canada, high-ratio mortgages require mortgage default insurance.
Default insurance protects the lender if the borrower defaults. The insurance premium is typically added to the mortgage (or paid upfront in some cases).
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Learn more about today’s best mortgage rates in Canada.
This Page’s Mortgage Rates Were Last Updated: May 14, 2026 9:17 PM ET
Important: Actual pricing depends on credit, income, down payment, property type, and lender program.
Most insured purchases follow these minimums:
5% on the first $500,000 of the purchase price
10% on the portion of the purchase price above $500,000 (where applicable)
Eligibility can also depend on purchase price caps and insurer rules.
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Even though insured rates are often lower, insured mortgages include an insurance premium that increases the total loan amount.
Example (simple illustration):
Purchase: $500,000
Down payment: 5% ($25,000)
Mortgage: $475,000
Insurance premium added: depends on insurer rules
New mortgage balance: $475,000 + premium
This is why the correct decision is not “lowest rate wins” — it’s lowest total borrowing cost over your expected timeline.
Insured mortgages can price lower because:
lender risk is reduced
capital requirements may be more favorable
lenders compete aggressively for high-quality insured files
But that doesn’t mean insured is always the best long-term choice—especially if:
you may break early (penalties)
you plan to refinance (insured rules differ)
your timeline is short
Check out our Mortgage Document Checklist for a complete list of documents required based on your specific mortgage journey.
Even with insured pricing, you must qualify under Canada’s mortgage stress test. Most borrowers must qualify at the greater of:
the lender’s contract rate + 2%, or
the benchmark qualifying rate
Insured mortgages are generally strongest for:
owner-occupied purchases
standard property types
clean credit + stable income
borrowers who fit insurer guidelines
Insured mortgages are commonly restricted/limited for:
certain non-traditional properties
certain refinance scenarios
higher-risk occupancy/property profiles
Often they’re lower than uninsured tiers, but total cost depends on premium + term + penalties.
Usually no. The premium is commonly added to the mortgage (or paid upfront in some cases).
Yes, but refinance rules differ and may limit how much equity you can take out.
True rental purchases usually require 20% down and are typically uninsured (rules vary by lender/insurer).
It depends on your timeline. Many borrowers choose 3–5 year terms, but we match term to your plans.
Our advice: choose the insured mortgage structure that matches your timeline and exit plan (renewal, refinance, move, upgrade), not just the headline rate.”
Simplify your financial planning with our full calculator suite:
Insured mortgages are best for:
first-time buyers with less than 20% down
buyers who want access to top insured rate tiers
buyers with strong documentation and stable income
borrowers planning to keep the mortgage for a meaningful portion of the term
Insured mortgages may not fit if:
you want a refinance with equity take-out
the property is outside typical insurer eligibility
you need maximum flexibility (some insured products are strict)
you expect to break early and penalty risk is high
We help you:
compare insured rate tiers across lenders
select a term that matches your real timeline
model total cost (rate + premium + penalties)
confirm insurer eligibility early (to avoid late decline)
structure income and down payment documents correctly
Explore Related Mortgage Resources:
Mortgage Penalties – Understand potential break fees and costs
Uninsurable Mortgage Rates – Compare rates for non-insured properties
Rental Property Mortgages – Financing options for investment properties
If you’re looking for insured mortgage rates in Canada and unsure which rates fits your situation, we’ll run the numbers and guide you through your options.