IK Financial Metarials
Mortgage Glossary

Mortgage 101 - High-Ratio Mortgage

What is a “High-Ratio Mortgage”?
The mortgage you obtain when you have less than 20% of the total purchase price to put down as your downpayment. This type of mortgage must be insured (through sources such as CMHC, Genworth Financial Canada or Canada Guaranty).
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A mortgage default insurance premium is payable by borrower and added to the total loan amount and amortized with loan over 25 years. This option allows buyers with fewer assets to get into home ownership.
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Down payment breakdown:
In order for you to obtain mortgage insurance, you will need a minimum down payment. The amount depends on the home’s purchase price:
🔹If the home costs $500,000 or less, you’ll need a minimum down payment of 5%.
🔹If the home costs more than $500,000, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remain amount.
🔹If the home costs $1,000,000 or more, mortgage loan insurance is not available.
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We want you to move into your Dream Home, and Inna and Katerina are here to help You. Call IK Financial or visit ikfinancial.com
Inna Bogdanov 416.268.0004 | Inna@ikfinancial.com
Katerina Markevich 416.388.8153 | Katerina@ikfinancial.com
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