Mortgage Insurance: CMHC vs Sagen vs Canada Guaranty

Canada's Three Default Insurers

Every high-ratio mortgage in Canada — any mortgage with less than 20% down — must carry default insurance, and there are exactly three providers who can supply it:

• CMHC — the Canada Mortgage and Housing Corporation, a federal Crown corporation and the original insurer.
• Sagen — Canada's largest private mortgage insurer (formerly Genworth Canada).
• Canada Guaranty — a Canadian-owned private insurer and the newest of the three.

All three are backed by a federal government guarantee, which is why lenders treat their coverage as essentially interchangeable. For most borrowers the practical differences are small — but they aren't zero, and knowing where they diverge helps.

What They Have in Common

The core product is nearly identical across all three:

• Premium structure. Each prices the premium as a percentage of the loan that scales with your loan-to-value. Put more down, pay a lower rate; put less down, pay more. The published premium bands are closely matched between the three.
• The premium is added to your mortgage and amortized over the term rather than paid as a lump sum.
• Government backing. All three carry a federal guarantee, so a lender's protection is equivalent regardless of which insurer signs off.
• Portability. Coverage generally moves with you if you port your mortgage to a new property.

Because of this parity, you will rarely — if ever — pay a different premium simply because your lender routed your file to one insurer instead of another.

Where They Differ

The differences show up at the margins, in program flexibility and underwriting appetite rather than headline price:

• Niche programs. Each insurer runs its own specialized products — for the self-employed, for new-to-Canada borrowers, for second homes, or for energy-efficient properties (some offer partial premium refunds on qualifying green homes). The exact eligibility rules and refund amounts vary by insurer.
• Underwriting nuance. On a borderline file — unusual income, a complex property, a thin credit history — one insurer may say yes where another hesitates. Experienced brokers know which insurer tends to be more accommodating for a given scenario.
• Refund and portability details. The fine print on premium refunds and porting can differ, which matters if you expect to move or refinance soon.

Who Actually Chooses?

Here is the part that trips up most buyers: you usually don't pick your insurer — your lender does. Lenders have their own relationships and routing logic, and they'll send your application to whichever insurer fits it best. As a borrower, your energy is far better spent choosing the right lender and mortgage than trying to steer the insurer.

That said, the choice isn't entirely out of reach. If your file has a feature one insurer handles better — a self-employment program, a green-home refund, a more flexible income rule — a broker can deliberately place your application with a lender who works with that insurer. That's where the insurer decision quietly gets made on your behalf.

What This Means for You

Don't lose sleep over CMHC versus Sagen versus Canada Guaranty on price — for a standard application, the premium will be effectively the same. Focus instead on:

1. The mortgage itself — rate, term, prepayment privileges, and penalty terms matter far more than the insurer's logo.
2. Your file's quirks — if you're self-employed, new to Canada, or buying something unusual, the right insurer can be the difference between approval and decline.
3. Working with someone who knows the routing — a broker sees all three insurers every week and knows which lender-insurer pairing fits your situation.

The Bottom Line

The three insurers are more alike than different: same government backing, near-identical premiums, coverage that protects the lender. They part ways only on niche programs and underwriting appetite — and since your lender is the one who chooses, the smartest move is to get your overall mortgage right and let a broker match you to the lender-insurer combination that clears your file cleanly.

Want help finding the right fit? Compare current rates or start with our mortgage calculators.