Whether you’re buying with less than 20% down or looking for coverage that protects your family if something unexpected happens, mortgage insurance is a key part of the homebuying process in Canada.
At Bank Street Mortgage, we help Ottawa homeowners understand their mortgage insurance options, compare providers, and choose the right coverage — so you’re protected without overpaying.
Your home is likely the largest financial commitment you’ll make. Mortgage insurance in Canada serves two important purposes — it allows you to purchase a home with less than 20% down, and it can protect your family from carrying mortgage payments if you face illness, disability, or loss of income.
For buyers putting down less than 20%, default mortgage insurance is required by Canadian lenders. It’s provided by CMHC, Sagen, or Canada Guaranty, and the premium is typically added to your mortgage balance.
Beyond the default requirement, mortgage protection insurance is an optional layer of coverage that pays down or covers your mortgage if you’re unable to. Both types serve different purposes, and understanding which applies to your situation is an important part of the process.
The right mortgage insurance plan does more than check a box on your lender’s requirements. When you work with Bank Street Mortgage, you get:
Financial protection that keeps your mortgage covered if life takes an unexpected turn.
Access to homeownership sooner a down payment under 20% is possible with default insurance in place. Clear cost breakdowns so you know exactly what your premium adds to your monthly payment. Guidance from licensed Ottawa mortgage brokers who understand local lender requirements and insurer differences.
We don’t sell you a generic plan. We match your coverage to your mortgage, your budget, and your family’s needs.
We keep the process straightforward. From your first call to final coverage, here’s how it works:
Whether you’re applying for default insurance on a new purchase or adding mortgage protection insurance to an existing loan, we handle the details so you don’t have to.
Mortgage insurance isn’t only for first-time buyers. It’s worth considering if you:
Are purchasing a home with a down payment under 20% (default insurance is required by your lender).
Want coverage that protects your family from carrying mortgage payments during illness or job loss.
Are self-employed or earn variable income and want an additional layer of financial security.
Are refinancing or renewing and want to review whether your current coverage still fits.
Want a licensed mortgage broker in Ottawa to explain your options and help you avoid overpaying.
Not sure which type of mortgage insurance applies to your situation? That’s exactly what we’re here for.
With Bank Street Mortgage, Ottawa homeowners get clear answers, competitive premiums, and coverage that actually matches their mortgage and their needs.
Contact us today for a free consultation. We’ll review your mortgage, compare providers, and recommend the coverage that protects your home and your family — without unnecessary cost.
Yes. In Canada, mortgage insurance is mandatory when your down payment is less than 20% of the purchase price. This is called default insurance, and it’s provided by CMHC, Sagen, or Canada Guaranty. The premium is typically added to your mortgage balance and spread across your regular payments.
Default mortgage insurance is required by your lender when your down payment is under 20% — it protects the lender if you default. Mortgage protection insurance is optional coverage that pays down your mortgage if you experience job loss, critical illness, disability, or death — it protects you and your family.
Default insurance premiums range from about 2.8% to 4.0% of your mortgage amount, depending on your down payment size. For a $400,000 mortgage with 10% down, the premium would be roughly $11,200, spread over your amortization. We break down the exact cost for your situation so there are no surprises.
For default insurance, your lender typically assigns the provider (CMHC, Sagen, or Canada Guaranty), but premiums and coverage are comparable across all three. For mortgage protection insurance, you have more flexibility — we help you compare plans and premiums to find the best value.
Default insurance does not — it only protects the lender. Mortgage protection insurance is the coverage that pays down or covers your mortgage balance in the event of death, disability, or critical illness. We help Ottawa homeowners understand which type of coverage they need and whether a standalone life insurance policy may offer better value.
Default insurance is typically approved alongside your mortgage application, often within days. Mortgage protection insurance can take one to two weeks depending on the provider and whether medical underwriting is required.
If your refinanced mortgage has a loan-to-value ratio above 80%, default insurance may be required. Even if it’s not, adding mortgage protection coverage at the time of a refinance or transfer is a smart way to ensure your home stays protected as your mortgage terms change.
