Compare Canada’s three mortgage default insurance providers by the factors that affect a real approval: lender access, underwriting fit, property type, borrower documentation, specialty programs, portability, and premium structure.
There is no universal winner. For a standard owner-occupied insured mortgage, CMHC, Sagen, and Canada Guaranty generally use the same core premium schedule. Your lender normally coordinates the insurance application, and the practical difference is often which insurer accepts the borrower, property, documentation, and mortgage structure.
A useful insurer comparison starts with the borrower profile, mortgage amount, property, province, down payment, amortization, and future plans.
This is not usually a direct retail choice between three insurance policies. Mortgage default insurance is arranged inside the lender’s approval process.
The lender coordinates the mortgage insurance application. Ask which insurer reviewed the file and whether another approved insurer may be considered if the application does not fit the first submission.
Standard premium rates are generally the same across the three providers. Differences become more important for non-standard down payments, longer amortizations, self-employment, rentals, renovations, and portability.
Each insurer maintains its own underwriting policies and specialty programs. A lender or broker may be able to review whether the file fits another provider, another lender, or a revised mortgage structure.
All three insure eligible Canadian mortgages for approved lenders. Their distinctions are more visible in ownership, lender relationships, underwriting policies, and named specialty programs.
Canada Mortgage and Housing Corporation is the public mortgage insurer. Its homeownership programs include standard purchase, newcomers, self-employed borrowers, improvements, second homes, prefab homes, portability, and energy-efficiency incentives.
Sagen is Canada’s largest private mortgage default insurer. Its product suite includes Homebuyer 95, New to Canada, Business for Self, Family Plan, Purchase Plus Improvements, secondary homes, investment properties, and secondary-suite refinancing.
Canada Guaranty offers standard insured mortgages and programs such as Downpayment Advantage, Flex 95 Advantage, Low Doc Advantage, Rental Advantage, Purchase Advantage Plus, Progress Draw Advantage, and Portable Advantage.
The table focuses on borrower-facing differences without pretending that one provider is automatically cheaper or easier for every application.
| Comparison factor | CMHC | Sagen | Canada Guaranty |
|---|---|---|---|
| Organization | Federal Crown corporation and public mortgage insurer. | Private mortgage default insurer. | Private mortgage default insurer. |
| Standard premium schedule | Generally 0.60% to 4.00% by loan-to-value; 4.50% may apply to qualifying non-traditional down payments. | Uses the same standard 0.60% to 4.00% bands; specialty programs may carry different rates. | Uses the same standard 0.60% to 4.00% bands; Flex 95 and Low Doc programs have separate rates. |
| 30-year insured amortization | Available for eligible first-time buyers or buyers of newly built homes, with an added premium. | Available on eligible owner-occupied files under current program criteria, with an added premium. | Available on eligible owner-occupied files under current program criteria, with an added premium. |
| Self-employed borrowers | CMHC Self-Employed supports eligible borrowers under documented program criteria. | Business for Self (Alt. A) addresses eligible borrowers without traditional income verification. | Downpayment Advantage and Low Doc Advantage address different self-employed documentation profiles. |
| Newcomers to Canada | CMHC Newcomers permits alternative credit evidence when Canadian credit is unavailable. | New to Canada program outlines documentation paths at different loan-to-value levels. | Maple Leaf Advantage is Canada Guaranty’s newcomer-focused program. |
| Renovations and construction | Improvement, Refinance for Secondary Suites, and Prefab Plus programs. | Purchase Plus Improvements, Progress Advance, and Refinance for Secondary Suites programs. | Purchase Advantage Plus, Progress Draw Advantage, and secondary-suite refinancing. |
| Rental or second-home files | Small rental and second-home insurance are available under separate criteria. | Investment Property and Vacation/Secondary Homes programs use separate eligibility and premiums. | Rental Advantage and Lifestyle Advantage address eligible rental and second-home scenarios. |
| Portability | Premium credits may reduce the cost of an eligible subsequent insured mortgage. | Portability and top-up calculations are available through lender portability plans. | Portable Advantage includes straight-port, port-with-increase, and borrower loyalty-credit provisions. |
| Who submits the application? | Your lender or mortgage professional normally coordinates the insurer submission. Availability depends on the lender’s approved relationships and underwriting process. | ||
Program names and criteria can change. The lender and insurer must confirm current eligibility, documentation, premium, property acceptability, and approval conditions for the actual application.
For standard owner-occupied mortgages with amortization of 25 years or less, the three insurers publish aligned premium bands. The premium rises as the mortgage represents a larger share of the property value.
See how mortgage insurance cost is calculatedLocal price levels, resale demand, property type, appraisal evidence, provincial tax, and construction practices can affect how an insured mortgage file is reviewed.
Buyers close to the $1.5 million insured-mortgage ceiling have less room to adjust the price or down payment. Ontario also applies provincial sales tax to the insurance premium, and that tax generally must be paid at closing rather than financed.
Review Ontario mortgage insuranceHigh purchase prices can make the dollar premium substantial even when all providers use the same rate. Condo status, appraisal support, property marketability, and the purchase-price ceiling may matter more than the insurer’s brand.
Review British Columbia guidanceNew construction, purchase-plus-improvement files, legal secondary suites, and progress draws may make the insurer’s program details more important. Confirm warranty, appraisal, draw, and completion-document requirements early.
Review Alberta mortgage insuranceLimited comparable sales, private well or septic systems, acreage, mixed-use features, modular construction, and slower resale demand can create additional property questions. A strong borrower profile does not automatically make every property insurable.
Review a property-specific scenarioQuebec and Saskatchewan, like Ontario, may apply provincial sales tax to the mortgage insurance premium. Include that cash requirement in the closing budget because the tax generally cannot be added to the insured mortgage.
Review the Canada-wide rulesA contractor in Calgary, consultant in Toronto, incorporated professional in Vancouver, or small-business owner in Halifax may fit standard income verification, an alternative self-employed program, or neither. Documentation and tax status often matter more than location.
Ask what documents to prepare
You may not be able to select any insurer independently of the mortgage lender, but you can ask better questions and understand why a particular submission path is being recommended.
Focus on the approval, mortgage terms, property conditions, premium, portability, and closing cash rather than treating the insurer name as a consumer brand ranking.
Confirm whether the lender works with CMHC, Sagen, Canada Guaranty, or a limited subset of providers.
Understand whether the issue is income, credit, down-payment source, debt ratios, appraisal, property type, marketability, or documentation.
A different insurer, lender, down payment, amortization, property, or documentation package may produce a different result—but no alternative is guaranteed.
CMHC, Sagen, and Canada Guaranty protect the lender against default. Review optional mortgage life or personal life insurance separately.
Mortgage insurance policies, premium surcharges, program combinations, and underwriting standards can change. Use this comparison to prepare questions, then rely on the lender and insurer for the final decision.
Continue to the Canadian mortgage insurance guideClear answers for Canadian buyers comparing insurer cost, selection, approval, portability, and borrower protection.
None is automatically best for every borrower. Standard premiums are generally aligned. The better fit depends on the lender, borrower profile, documentation, property, down-payment source, amortization, and any specialty program the application needs.
You can ask which insurer is being used and whether alternatives are available, but your lender normally coordinates the application. Some lenders work with all three insurers, while others may use only one or two.
Their standard premium schedules are generally aligned by loan-to-value ratio. Specialty programs, non-traditional down payments, longer amortizations, rental properties, alternative income documentation, and portability can produce different rates or calculations.
It is possible because each insurer has its own underwriting policies and programs, but approval is not guaranteed. The reason for the decline matters. Some property, credit, affordability, fraud, or eligibility issues may remain unacceptable to every insurer.
Your lender sets the mortgage pricing and terms. Insured mortgages may qualify for competitive rates because the lender’s default risk is insured, but the borrower should compare the full mortgage offer rather than assume one insurer always creates a lower rate.
All three publish options for eligible self-employed borrowers, but documentation, down-payment, credit, property, income-reasonability, and premium requirements can differ. The lender must match the file to the correct program.
Each provider offers portability provisions for eligible borrowers and transactions. Requalification is normally required, and a top-up premium may apply when the new mortgage is larger. Ask for the insurer and original insurance certificate details before selling or refinancing.
No. Mortgage default insurance protects the lender if the borrower defaults. Mortgage life insurance or personal life insurance addresses death-related protection and should be reviewed as a separate decision.
Compare the mortgage rate, term, prepayment privileges, penalties, portability, lender service, approval conditions, property requirements, insurer program fit, closing cash, and whether the lender can consider another insurer if the file changes.
Share the purchase price, down payment, province, property type, income structure, amortization, and closing timeline. Those details are more useful than asking for a provider ranking without context.
