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in this video im going to be going over exactly what mortgage default insurance is and how much its going to cost you if you choose to put less than 20 down for a down payment [Music] welcome back guys its tom here from office mortgages today i want to clarify the topic of mortgage insurance as i see a lot of people out there a little confused as to how it works mortgage insurance is a mandatory insurance in place for properties that have less than a 20 down payment its also most commonly referred to as cmhc but its important to note that cmhc is just one of the insurers out of the three the other two are sagen and canada guarantee mortgage insurance comes into place whenever the loan to value exceeds 80 percent the reason why its in place is because lenders require that its there in case you ever default on your mortgage lets put ourselves into the shoes of the lender and say youre borrowing money to the borrower and they end up defaulting on their mortgage you want to make s
