Home > Blog > Canada's New Insured Mortgage Rules: Why They're Good News for Homebuyers

What Is an Insured Mortgage? (Quick & Simple)

If your down payment is less than 20%, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty.

Mortgage insurance:

• protects the lender (not the buyer)
• allows buyers to purchase a home with as little as 5% down
• adds a one-time insurance premium to your mortgage
• can help you qualify even when rates are higher

Good news: The new rule changes make this path more accessible.

What Changed With Canada’s Insured Mortgage Rules?

Here are the key updates explained simply:

1. Higher Home Price Limits for Insured Mortgages

In many parts of Canada, home prices climbed faster than the insured mortgage “ceiling.”

New rules increase the maximum home price eligible for insurance, meaning:

• More homes now qualify for insured mortgages
• More buyers can access lower down payment options

This especially helps first-time buyers trying to get into competitive markets.

2. Updated Income & Qualification Guidelines

Lenders and insurers have slightly adjusted how they assess income and debt.

In everyday terms:

• It may now be easier to qualify for a mortgage
• More types of income may be accepted
• Self-employed buyers may have a smoother path to approval

This gives buyers more flexibility and increases approval chances.

3. Changes to Mortgage Insurance Premium Tiers

Premium structures have been refreshed so that:

• Buyers putting 5–10% down may see more favourable premium options
• Some borrowers may pay slightly lower insurance premiums overall

Even small premium reductions can make a difference in monthly payments.

Why These Changes Benefit Canadian Homebuyers

These insured mortgage rule changes aren’t meant to make things harder — they’re meant to open the door wider.

Here’s how you benefit:

• Easier to qualify even with higher interest rates

Insured mortgages often allow lower qualification rates than uninsured mortgages.

• More homes fall within insured mortgage limits

This helps buyers in cities where average prices exceed old thresholds.

• Lower down payment options

You can still buy with as little as 5% down, which keeps homeownership accessible.

• More predictable monthly payments

With insurance, lenders offer better rates compared to buyers with small down payments going uninsured.

Use the Mortgage Payment Calculator to See Your True Insured Payment

Instead of guessing what your insured mortgage will cost, you can calculate it instantly.

Try the Mortgage Payment Calculator on MyRealEstateCalculator.ca.

It automatically:

• determines whether your mortgage requires insurance
• calculates your exact CMHC/Sagen/Canada Guaranty premium
• shows you your real monthly or bi-weekly payment
• 
  

This makes comparing insured vs. uninsured options much easier.

Should You Consider an Insured Mortgage?

You might benefit if:

• you have less than 20% down
• you're a first-time homebuyer
• you want the lowest possible interest rate
• you prefer a predictable, stable payment
• you want an easier qualification path

Even Canadians with more than 20% down sometimes choose insured mortgages because the rate discount offsets the insurance cost.

Final Thoughts

The new insured mortgage rule changes are a positive shift for Canadians — especially for first-time buyers struggling with rising home prices. With higher price limits, updated qualification rules, and more flexible guidelines, getting approved is now more achievable than it has been in years.

Before you start house shopping, take 30 seconds to see what your real payment could look like.

Use our Mortgage Payment Calculator — it does the insurance math automatically so you don’t have to.