Merriam Webster

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A description of terms and details of parameters used with the Canada Mortgage calculators.

Condo Fees		How utilized in calculating required incomes
Down Payments		Parameters used for Canada Mortgage conventional financing calculator.
DS Ratios		Understanding Debt Service Ratios
Insurance Fees		for High Ratio Mortgages
Household Income		Determining qualifying income levels
% Interest		The default mortgage interest rates for our calculators
Investment		Investment Mortgages
Loan / Value		Loan to Value Ratio
Property Tax		Property Tax usage in Canada Mortgage Calculators
Rate Survey		Canada Mortgage's interest rate survey

High Ratio Financing

Mortgage Insurance Premium

The "fee"

The fee for high ratio mortgages is an insurance premium paid by the purchaser to the insurer on behalf of the lender. The lender is then insured that the mortgage will indeed be paid on the agreed upon terms.

The insurance is required due to the higher risk associated with a lower down payment as the property may not be sufficient collateral for the loan, especially in a declining market.

The fee is a one time only premium paid at the time of purchase which is often rolled into the mortgage amount. The calculators herein assume the premium (the "fee") is included in the mortgage amount. The amount of the fee is determined by the Loan to Value Ratio category and the amount of total mortgage funds insured.

See the percentages and criteria within each LVR category description (75% - 95%).