Insured Mortgages

‍

Making Homeownership More Accessible with Lower Down Payments

If you’re looking to purchase a home with less than a 20% down payment, an insured mortgage—commonly known as a high-ratio mortgage—is likely your best path to homeownership. At Hoam Loans, we help first-time buyers, self-employed clients, and those with complex financial profiles understand how insured mortgages work and how to qualify with confidence.

‍

What is an Insured Mortgage?

An insured mortgage is a loan that requires mortgage default insurance because the down payment is less than 20% of the home’s purchase price. This insurance protects the lender in case the borrower defaults on the loan, making it possible for you to buy a home with a smaller down payment.

The premium for mortgage insurance is typically added to your mortgage amount and can be paid off over the life of the loan.

‍

The Three Main Mortgage Insurers in Canada:

CMHC (Canada Mortgage and Housing Corporation)
Sagen (formerly Genworth Canada)
Canada Guaranty

At Hoam Loans, we’ll help you determine which insurer and program best fit your situation.

‍

Benefits of Insured Mortgages

1. Lower Down Payment Requirements

With an insured mortgage, you can purchase a home with as little as 5% down for properties under $500,000. This makes homeownership much more accessible, especially for first-time buyers.

2. Competitive Interest Rates

Insured mortgages typically offer lower interest rates than uninsured mortgages, helping you save on interest costs—even though you’ll pay the insurance premium.

3. Available to First-Time Buyers and Newcomers

Whether you’re a first-time buyer, new to Canada, or self-employed with strong documentation, insured mortgage programs can help you qualify with less upfront cash.

4. Flexible Solutions for Self-Employed and Complex Situations

While insured mortgages do require standard income verification, there are options available for self-employed borrowers who can provide strong income documentation, such as tax filings or bank statements. Hoam Loans specializes in guiding clients through these situations to maximize their approval chances.

5. Minimum Credit Score Flexibility

Mortgage insurers may approve applicants with a minimum credit score as low as 600-680, depending on the program, making this an option even for buyers working to build their credit history.

‍

Why Work with Hoam Loans?

Step-by-step guidance through the insured mortgage process
Access to multiple lenders and mortgage insurers for competitive rates and flexible options
Personalized support for self-employed borrowers, newcomers, and buyers with limited credit
Clear explanations so you fully understand your insurance premiums, qualification criteria, and homeownership costs

At Hoam Loans, we make insured mortgages simple, approachable, and tailored to your situation—whether you’re buying your first home or navigating a complex financial profile.

‍

Insured Mortgages