What’s the difference between an insured and uninsured mortgage in Canada?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
An insured mortgage includes mortgage default insurance (often required with a smaller down payment). Uninsured mortgages generally have larger down payments and different rate and qualification dynamics.
Mortgage default insurance protects the lender, not you.
When insurance is commonly required
Smaller down payments often require default insurance (provided by insurers such as CMHC and others).
How it affects you
- You pay an insurance premium (often added to the mortgage).
- Insured mortgages can sometimes qualify for different pricing.
- Rules about property type, Amortization, and qualification may differ.
Practical tip
Ask your broker to compare the true cost: the rate difference versus the insurance premium and the time you expect to keep the mortgage.
If you are using private financing, default insurance is generally not part of the structure, which is one reason rates and fees can be higher.