Compare Mortgage Insurance Options: CMHC vs Private Insurers

When considering mortgage loan insurance in Canada, borrowers mainly encounter three major providers: CMHC (Canada Mortgage and Housing Corporation), Sagen (formerly Genworth Canada), and Canada Guaranty. Understanding the similarities and differences among these options is essential for making an informed choice when financing a home.

 

 

Overview of Providers

Provider

Type

Coverage Focus

Key Benefits

CMHC

Federal Crown agency

Widely accepted, standard insured mortgages

Strong government backing; extensive program offerings, including energy-efficiency incentives and mortgage portability

Sagen

Private insurer

Owner-occupied and specialized programs

Flexible underwriting, including options for self-employed and alternative financial situations

Canada Guaranty

Private insurer

Similar to CMHC and Sagen

Competitive pricing; tailored products with focus on customer service

 

 

Premium Rates

All providers generally use similar loan-to-value (LTV) based premium rates. For traditional owner-occupied insured mortgages, premium rates fall roughly within:

LTV Range

Premium Rate (Approx.)

Up to 65%

0.60%

Up to 75%

1.70%

Up to 80%

2.40%

Up to 85%

2.80%

Up to 90%

3.10%

Up to 95%

4.00%

Note: Rates for non-traditional mortgages (self-employed, investment properties, vacation homes, borrowed down payments) tend to be higher. Sagen offers some of these specialized programs.

 

 

Special Programs and Benefits

CMHC

  • Largest insurer with government guarantee, trusted widely by lenders.
  • Programs for energy-efficient homes — partial premium refunds.
  • Mortgage portability allows borrowers to transfer insurance when moving.
  • Clear guidelines and widely accepted by lenders and investors.

Sagen

  • Flexible underwriting for borrowers with non-traditional income documentation, self-employed status, or investment property purchases.
  • Packages for second homes, vacation properties, and borrowed down payments.
  • Competitive rates for specialized mortgage types.

Canada Guaranty

  • Similar policies to CMHC and Sagen but may differentiate through customer service or faster application processing.
  • Focus on market niches including multi-unit buildings and smaller rental properties.

 

 

Choosing the Right Option

For most traditional homebuyers, CMHC is the default and easiest option with broad lender acceptance and straightforward terms.

For borrowers with specific financial situations, such as being self-employed or buying a second property, Sagen or Canada Guaranty may offer more personalized solutions.

In all cases, premiums are typically paid by the buyer and added to the mortgage principal or paid upfront.

 

 

Learn More and Compare Detailed Rates