🏡 Conventional vs. Insured Mortgages in Canada: Which One Saves You More?
- erin0582
- Aug 22
- 2 min read
Are you confused about the difference between a conventional mortgage and an insured mortgage? You're not alone—and if you're planning to buy a home in Canada, this is need-to-know info.
In this blog, we break down what each mortgage type means, how they affect your down payment, your monthly payments, and what lenders are really looking for when you apply for financing.
🔍 What Is a Conventional Mortgage?
A conventional mortgage means you're putting 20% or more down on a property.
This is the gold standard of mortgages in Canada, and here's why:
💸 No mortgage insurance fees (like CMHC)—saving you thousands
✅ Considered low-risk by banks and credit unions
💰 Lower interest rates on average
⏳ Access to longer amortization periods
🧾 Greater flexibility in loan structuring
Bottom line? If you’ve got 20% saved, a conventional mortgage will cost you less over time and offer more flexibility.
🛡️ What Is an Insured Mortgage?
If you're putting less than 20% down, your mortgage is considered high-ratio and needs to be insured, usually by CMHC, Sagen, or Canada Guaranty.
That means:
🧾 You’ll pay a mortgage insurance premium of up to 4% of your total loan
🏦 This protects the lender, not you
📉 But you’ll get access to some of the lowest interest rates on the market
🕐 It lets you enter the market sooner with less upfront cash
💼 Keeps capital available for renos, investments, or emergencies
While insurance may seem like an added cost, it can help you get into the market early—especially if home prices are rising fast.
🤔 So… Which Mortgage Should You Choose?
That depends on your goals:
Want to save on monthly payments and insurance premiums? → Choose a conventional mortgage
Want to buy with less money down and start building equity sooner? → Go with an insured mortgage
At the end of the day, the right move isn’t just about what saves you money—it’s about building a smart long-term homeownership strategy.
📞 Let’s Talk Strategy
Still unsure which mortgage is right for you? Whether you're a first-time buyer or making a move in a rising market, I’m here to guide you.
👉 Contact me anytime for a personalized game plan based on your budget and timeline.
Erin Price Emery
Contact me: erin@priceemery.com
Call or text: 604-767-7725
Explore homes for sale in Vancouver and other areas at listitvancouver.com
