Mortgagenomics Canada

Mortgages are classified as one of the following three; Insured, Insurable, or Uninsured/Conventional.The way a mortgage is priced and qualified depends on how its funds were purchased, acquired or allocated.Mortgages are either insured by the borrower, bulk insured (securitized) by the lender, or simply uninsured all together.Once they are given their insurability classification, they are then priced and underwritten, accordingly:(1) INSURED MORTGAGESOnly available for purchases of owner-occupied properties under $1M with 25 year amortizationsminimum down payments of 5%, but cannot exceed 20%the premium is commonly paid for by the applicant via an equity stake on the property (rather than out of pocket). For example, let's say you are purchasing a $400,000 property with a 5% down payment. Your mortgage would be $380,000 PLUS an insurance premium of 4% of the mortgage amount. Therefore, your total mortgage would be bumped up to $395,000 ($380,000 + $15,200)mortgage