Active Mortgage · Guide
Insured vs insurable vs uninsured mortgages
Lenders sort mortgages into three groups: insured, insurable and uninsured. The category isn't just paperwork — it affects the rates and options available to you. Here's what each means.
Insured
An insured mortgage has mortgage default insurance because the down payment was less than 20% of the purchase price. You pay the insurance premium, usually added to the mortgage. Because the lender is protected, insured mortgages often qualify for some of the lowest rates.
Insurable
An insurable mortgage has 20% or more down but otherwise meets insurance rules, such as the purchase price and amortization limits. You don't pay a premium. The lender may buy insurance on a group of these mortgages itself, which can help keep rates competitive.
Uninsured
Uninsured mortgages fall outside insurance rules. Common examples include refinances, purchases above the insurable price limit, longer amortizations not eligible for insurance, and some rental properties. Rates can be somewhat higher because the lender carries more risk.
Current insurable limits: [PLACEHOLDER: current maximum insurable purchase price and amortization rules].
Why it matters at renewal or switch
Switching lenders at renewal can keep your mortgage in its original category if nothing changes, although rules have evolved. Adding money or extending the amortization usually makes it uninsured. Our brokers can tell you which category you're in and how to keep access to the best pricing.
Examples
A first-time buyer putting 10% down on a home within the insurable price limit has an insured mortgage. A buyer putting 25% down on the same home, with an amortization within insurance rules, likely has an insurable mortgage. A homeowner refinancing to take out equity for renovations has an uninsured mortgage.
These categories can change over the life of your mortgage. If you're considering adding funds or extending your amortization at renewal, ask your broker first how it could affect your category and pricing.
Why lenders price them differently
Lenders hold capital against the risk on their loans. Insured and insurable mortgages generally carry less risk for the lender, which can translate into sharper rates. Uninsured mortgages carry more risk, so lenders may charge a little more. Shopping across lenders matters most for uninsured files, where pricing can vary widely.
How our brokers can help
Active Mortgage is a team of brokers working with a range of lenders. We can review your situation, explain the options that apply to you and compare real offers side by side. There's no cost to talk with us, and you're never under pressure to proceed.
Common questions
Do I pay insurance on an insurable mortgage?
No. The lender may insure it on its own, but you don't pay a premium.
Is a refinance ever insured?
Refinances generally aren't eligible for default insurance, so they're usually uninsured.
Why would an uninsured rate be higher?
The lender holds more risk and may need more capital, which can be reflected in pricing.
Related tools and services
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