High Ratio Mortgage Insurance Premiums

By: Save With Neil  09-12-2011
Keywords: financing

The following is a break down of the premiums depending on the loan to value ratio (LTV), for high-ratio mortgage loans offered for programs through both CMHC and Genworth Financial:

Loan to Value High Ratios (LTV) Insurance Premiums
100% financing (Genworth only) with lender cashback incentives 2.90%
90.1 - 95% financing 2.75%
85.1 - 90% financing 2.00%
80.1 - 85% financing 1.75%
75.1 - 80% financing 1.00%

There are also programs available by the insurers that allow for the self-employed borrower unable to prove qualified income, to obatin mortgage financing under an Alt "A" program, who otherwise would not qualify under the traditional guidelines.

Ask one me for more details on the Alt "A" program. Extended amortizations of up to 35 years are also available to borrowers through the insurers at a slightly higher premium, which allows for greater affordability.

Conventional Insured (LTV) Insurance Premiums
65.1-75% financing 0.65%
65% or less financing 0.50%

Applicants should be careful to understand why a lender is insisting on insuring a transaction when the LTV is less than 75%, so that they are not being unnecessarily insured.

IMPORTANT NOTE: Do not forget to ask me how we can save you money if you are topping.

Keywords: financing

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First Time Home Buyers

There are also programs available through Genworth Financial and secondary mortgage lenders through a self-insured program, that allow for 100% financing with higher premiums for the greater risk they take on these types of transactions. Just be aware that these mortgages are offered at posted rates, (significantly higher than discounted rates), and the cash back is pro-rated in the case that you re-finance your mortgage.


Repeat Buyers

Something else that the Repeat Buyer should also take into consideration before making a decision on their new purchase and mortgage is whether or not the product they currently have with their existing lender is right for them. There are variations of products in the market place today, which can assist you in paying off your mortgage quicker.



With our pre-approvals, we provide a four month rate hold, and purchasers can be at ease with the buying process in order to make sure they purchase the home that best suits their needs. This process also provides First-Time Buyers a great opportunity to become more educated by asking all their questions well ahead of time so that there are no surprises.