Financial institutions are required by law to insure all mortgages with a loan to value ratio of less than 80%. This insurance protects the lender against borrower default.
Note: Provicial Sales Tax (8%) is applicable on mortgage insurance premiums, is due the date of closing, and is not rolled into a mortgage. Mortgage insurance premiums are exempt from the full Harmonized Sales Tax.
Mortgage Insurance Premiums Explained
Mortgage loan insurance premiums are calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.
|Loan-to-Value ||Premium on Total Loan ||Premium on Increase to Loan Amount for Portability and Refinance |
|Standard Premium ||Self-Employed without 3rd Party Income Validation ||Standard Premium ||Self-Employed without 3rd Party Income Validation** |
|Up to and including 65% ||0.50% ||0.80% ||0.50% ||1.50% |
|Up to and including 75% ||0.65% ||1.00% ||2.25% ||2.60% |
|Up to and including 80% ||1.00% ||1.64% ||2.75% ||3.85% |
|Up to and including 85% ||1.75% ||2.90% ||3.50% ||5.50% |
|Up to and including 90% ||2.00% ||4.75% ||4.25% ||7.00%* |
|Up to and including 95% ||2.75% ||N/A ||4.25%* ||* |
|Extended Amortization Surcharges |
|Greater than 25 years, up to and including 30 years: 0.20% |