How much will mortgage insurance add?

The premium depends mainly on the loan-to-value ratio, which reflects the mortgage amount compared with the property's value. A smaller percentage down payment generally produces a higher insurance premium rate.

Mortgage default insurance is generally required for eligible purchases when the down payment is below 20%. Eligibility also depends on the purchase price, property and mortgage rules in effect at the time.

The mortgage default insurance premium can generally be added to the mortgage balance. Any provincial tax that applies to the insurance premium is normally handled separately and may need to be paid at closing.

Yes. A larger down payment lowers the loan-to-value ratio and can reduce the premium. With a down payment of at least 20%, mortgage default insurance is generally not required for a conventional mortgage.

It depends on the province. Some provinces apply a provincial tax to mortgage default insurance premiums, so the cash required at closing may include tax even when the premium itself is added to the mortgage.