Mortgage Default Insurance Disclosure

Mortgage Default Insurance Disclosure

The Mortgage Insurance Disclosure Regulation requires us to make the following information available to the public on request. We must also give the information to borrowers who require Mortgage Default Insurance and we must give it to them before or when they sign a residential mortgage agreement with us. 

  • We use Mortgage Default Insurance to protect ourselves in case you default on your mortgage payments or on any other term of the mortgage agreement. The insurer we use for this purpose is Canada Mortgage and Housing Corporation (CMHC).

    For more details on mortgage default insurance, please visit the insurer’s website at:
  • We pay an insurance premium to the insurer for the mortgage default insurance and we pass this cost on to you. You can pay the premium in a single lump sum or you can add it to your mortgage, in which case it will be included as part of your mortgage payment amount as disclosed on your Residential Mortgage Statement of Disclosure.
  • The insurer calculates the premium amount as a percentage of the amount that you borrow. The insurer may base the premium on a number of factors, including:
    • The Loan to Value (LTV) ratio. This is the amount you borrow relative to the price or value of the property. 
    • The type of mortgage (i.e.: Second Mortgage, Mortgage for vacation home, Refinance of an insured loan).
    • The Amortization Period – the length of time it will take to pay off your mortgage.
    • Your employment status.

The insurer may have different or additional premiums for specific types of mortgage products or mortgage programs. Additional details can be obtained on the insurer’s website at:

  • If you default and the insurer pays us, you will still remain liable under the mortgage but your obligation will be to the insurer and not to us.
  • Our relationship with the insurer is at arms-length. We do not have any arrangements to receive payments or benefits from them because of the mortgage default insurance, other than for claims.