These are mortgages where the borrower has a down payment of less 20% of the property financed value. Such mortgages are insured by lenders with one of Canada’s three mortgage insurers; CMHC, Genworth or Canada Guaranty. Although the insurance is usually added to the mortgage, the borrower is responsible to pay for the mandatory mortgage insurance. To qualify for mortgage insurance coverage in case of borrower default a lender is obligated to meet or exceed mortgage insurer rules. Since a lender is afforded protection against borrower default, insured mortgages are typically offered at the lowest discounted mortgage rates to borrowers.

Sometimes also called the “Mortgage Rate” or just the “Rate” and it is the contract rate of interest that the lender charges the borrower on a mortgage. The interest rate can either be fixed or variable and compounded in various ways including, but not limited to Annual, semi-annual, monthly etc.