Products

High-ratio mortgage

A mortgage with less than 20% down — requires default insurance from CMHC, Sagen, or Canada Guaranty. Premium ranges from 2.8% to 4.0% of the loan and is added to the principal.

High-ratio sounds worse than it is. Because the loan is insured, the lender's risk is covered, so high-ratio mortgages often carry the lowest rates available — frequently beating a 20%-down conventional mortgage on rate.

The cost is the premium: roughly 4.0% of the loan at 5% down, scaling down to about 2.8% at 15% down. It's added to your principal and amortized, so you don't pay it upfront, but you do pay interest on it over the term.

High-ratio is purchase-only (max 25-year amortization, price under $1.5M, owner-occupied). You can't make a refinance high-ratio. For most first-time buyers it's the fastest, cheapest path into the market.

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A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative lender that prices slightly higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Equitable, Home Trust, CMLS, and Manulife Bank are common B lenders.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

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