Mortgage Insurance Canada
There are three different Canadian mortgage insurance providers:
- Genworth Financial Canada
- AIG United Guaranty
Mortgage insurance protects the lender against payment default by the homebuyer. Most lenders require it if the homebuyer has less than 20 percent of the purchase price as a down payment. By providing mortgage loan insurance to lenders, CMHC enables homebuyers to finance up to 95 percent of the purchase price of a home.
Over the years, CMHC mortgage insurance products have responded to the changing needs of Canadians. CMHC introduced innovations such as purchasing a home with just five per cent down, financing renovations at the time of purchase and most recently the opportunity to refinance up to 95 per cent of the equity in the home, to provide homeowners with greater choice and home financing flexibilities.
CMHC led the market with the introduction of emili, CMHC’s automated insurance risking systems, in 1996. This on-line system makes the application process for mortgage loan insurance faster and the risk assessment of the application more precise. Through innovations such as emili, and the experience we have gained through its use, CMHC is able to pass on the benefits to Canadians in the form of lower premiums, and make homeownership more affordable.
Genworth Financial Mortgage Insurance
If you’re purchasing a home and are borrowing more than 80% of the value of the property, the mortgage must be insured. The insurance protects the lender against borrower default. This enables you to purchase a home with as little as a 5% down payment. Mortgage insurance is not life or disability insurance.
Genworth Mortgage Insurance Canada together, with its related affiliates, is the largest private sector mortgage insurance company in the world and the only private sector supplier of mortgage insurance in Canada. Genworth works in partnership with lenders, mortgage brokers, real estate agents and builders to make housing more affordable to Canadians. We combine our experience in mortgage default insurance with our strength in technology and our extraordinary commitment to quality to provide our customers with the level of service they expect.
Genworth offers a competitive choice of flexible mortgage default insurance products for the purchase, renovation or refinancing of homes across Canada. These include a portability feature, introduced to Canadians by Genworth. We also work with lenders to provide homebuyer seminars and we offer a consultation service to lenders working with borrowers experiencing temporary difficulty in meeting their mortgage payment commitments.
Genworth understands the importance of fast, reliable processing of mortgage insurance applications. GE Excel O, our fully automated delivery and decision system enables us to receive, process and in many cases approve applications within minutes.
Genworth has been known for years as a name trusted for quality and dependability.
There are two fees associated with mortgage insurance: the underwriting fee
and the premium.
AIG United Guarantee Mortgage Insurance
For more than 40 years, AIG United Guaranty’s parent company has been part of the Canadian insurance marketplace. AIG is now proud to be viewed as a catalyst of change and one of Canada’s newest private mortgage default insurers.
AIG is committed to offer mortgage lenders, brokers and home buyers:
- Product Innovation.
- Flexibility in our underwriting guidelines and processes.
- Choice, supporting a wider range of needs for greater access to home ownership.
- Financial Strength and broad risk-management experience that comes with the name AIG United Guaranty.
It’s an exciting time to be part of the Canadian housing finance community. You can trust in AIG’s commitment to meet your business needs, both today and in the future.
Visit the AIG United Guaranty web site for more information: http://www.aigug.ca/