Insured vs Uninsured Mortgage Rates Canada 2026

Q: What is the difference between an insured and an uninsured mortgage in Canada?

An insured mortgage (also called a high-ratio mortgage) has a down payment below 20% and must carry mortgage default insurance from CMHC, Sagen, or Canada Guaranty. Because the lender is protected against borrower default, insured mortgages qualify for the lowest rates. An uninsured (low-ratio) mortgage has 20% or more down payment and no insurance requirement, so lenders price in more risk — typically 0.25% to 0.50% or more above insured rates. All mortgages above $1.5 million, refinances, and rental/investment purchases are uninsured regardless of down payment.

Q: How much lower are insured mortgage rates than uninsured rates in 2026?

As of September 2026, the insured 5-year fixed rate starts around 4.09% (Ratehub) and 3.94% (WOWA), while uninsured pricing on the same term is typically 0.25% to 0.50% higher depending on lender, province, property value, and amortization. The gap widens on shorter terms and on larger balances above the $1.5 million insured cap. Exact uninsured pricing must be quoted by a lender based on your file. These are publicly advertised benchmarks, not offers or guarantees.

Q: Does CMHC mortgage insurance affect my mortgage rate?

CMHC insurance does not change the mortgage rate itself, but it unlocks access to the insured rate tier. Borrowers with less than 20% down pay an insurance premium (added to the mortgage or paid upfront) in exchange for the lower insured rate. The premium cost and the rate savings should both be weighed: on a $500,000 purchase with 10% down, the premium is about $18,900 (CMHC 2026 rates), but the insured rate may be 0.25% to 0.50% lower than uninsured — which over a 5-year term can save thousands in interest.

Q: Should I choose insured or uninsured at renewal in 2026?

This page does not give personalized advice. At renewal, most borrowers cannot add insurance if they did not have it originally, so the insured/uninsured comparison is usually set at purchase. If you are renewing with the same lender, your existing insurance status carries through. If you switch lenders at renewal, an uninsured borrower with 20%+ down may still qualify for insurance on a new purchase — but renewal switches are typically treated as new lending and may be requalified. Run the numbers with the mortgage payment calculator and compare at least three offers before deciding.

Quick takeaway: As of early September 2026, public comparison tables showed the lowest advertised insured 5-year fixed at 4.09% (Ratehub) / 3.94% (WOWA), while uninsured pricing on the same term was typically 0.25%–0.50%+ higher. The gap comes down to mortgage default insurance: lenders protect against default on insured files, so they pass the savings to borrowers. Uninsured files — purchases above $1.5M, refinances, rentals, 20%+ down — carry more lender risk and higher rates. These are advertised benchmarks, not offers or guarantees.

4.09%Lowest advertised insured 5-yr fixed (Ratehub, Sept 4).

3.94%Lowest advertised 5-yr fixed (WOWA, Sept 4).

~0.25%–0.50%+Typical insured-to-uninsured gap on 5-yr fixed.

$1.5MInsured cap — purchases above this are uninsured.

20%Down payment threshold for uninsured classification.

October 28Next Bank of Canada decision — bond yields still drive fixed pricing.

What insured and uninsured mean

In Canada, mortgage default insurance protects the lender if you default. Three insurers provide it: CMHC, Sagen, and Canada Guaranty. When a file qualifies for insurance, the lender prices it at the insured tier — which is always the lowest published rate. When a file does not qualify, it is priced at the uninsured (or insurable) tier, which is higher because the lender carries the full default risk.

Category	Down payment	Rate tier	Insurance premium
Insured (high-ratio)	Below 20%	Lowest advertised	Yes — added to mortgage or paid upfront
Insurable	20%+	May qualify for insured if lender places insurance	Optional
Uninsured (low-ratio)	20%+	Higher than insured	No
Uninsured (any down)	Any	Highest	No

A mortgage is also uninsured by type: any purchase above $1.5 million, any refinance, any rental/investment property, and any non-owner-occupied purchase. See current Canadian mortgage rates for context.

Why insured rates are lower

Lenders price mortgage rates based on the risk they carry. With default insurance, the lender is protected against losses if you stop paying — so they can afford to price the mortgage more aggressively. Without insurance, the lender absorbs the full risk of default, and the rate reflects that.

In practical terms, the difference between insured and uninsured on a $500,000 mortgage amortized over 25 years can be hundreds of dollars per year in interest — and thousands over a full 5-year term. The gap is not a fixed percentage; it varies by lender, term, amortization, property province, and the borrower's credit profile.

How the $1.5 million cap and down-payment rules affect pricing

Three rules determine whether a file is insured, insurable, or uninsured:

Down payment below 20% = insured (if under $1.5M and owner-occupied). The borrower must pay mortgage default insurance. The premium depends on the down payment: 4.00% of the purchase price for 5% down, 3.10% for 10% down, 2.80% for 15% down (CMHC 2026 premium rates; Sagen and Canada Guaranty differ slightly).
Down payment 20%+ = uninsured, but may be insurable. Some lenders will voluntarily place insurance on an insurable file to access securitisation benefits — this can bring the rate closer to insured pricing, but not all lenders offer it.
Purchase above $1.5M = uninsured regardless of down payment. Refinances, rentals, and non-owner-occupied purchases are also uninsured. These files almost always price above the advertised low.

For Ontario, British Columbia, and Alberta borrowers, the $1.5M cap is especially relevant: median home prices in the GTA, Vancouver, and Calgary often exceed the threshold, meaning a large share of local borrowers fall into the uninsured tier even with solid down payments.

What the September 2026 data shows

Public comparison snapshots from early September 2026 show the following pattern for 5-year fixed pricing:

Source	Insured 5-yr fixed	Uninsured 5-yr fixed (typical)	Gap
Ratehub (Sept 4)	4.09% (high-ratio)	~4.34%–4.59%	~0.25%–0.50%
WOWA (Sept 4)	3.94% (lowest)	~4.19%–4.44%	~0.25%–0.50%
Bank of Canada 5-yr GoC yield	3.41% on latest data (Sept 7)		Yield drives fixed pricing

The uninsured column is illustrative — lenders do not publish a single "uninsured" rate. Your actual uninsured quote depends on balance, property, credit, and lender policy. The gap is an estimate based on publicly visible spread patterns, not a promise of what you will receive. See current Canadian mortgage rates and mortgage renewal rates for updated snapshots.

Does CMHC insurance premium cost more than the rate savings?

This is the question every borrower with less than 20% down should run. A common example: on a $500,000 purchase with 10% down ($50,000), the CMHC premium is about $11,900 (added to the mortgage). The insured rate may be 0.25%–0.50% lower than uninsured. Over a 5-year term, the interest savings from the lower rate can offset a meaningful share of the premium — but the exact math depends on your balance, term, and whether you break early.

Use the mortgage payment calculator to test the insured scenario (rate + premium added to balance) against the uninsured scenario (higher rate, no premium). Compare the total cost, not just the starting rate.

What this means at renewal

At renewal, your insurance status is usually locked in from the original file. If you started with an insured mortgage, you renew insured. If you started uninsured, you renew uninsured — even if you now have 20%+ equity. Switching lenders at renewal may open the door to insurance if the new lender accepts the file, but renewal switches are often treated as new lending and may be requalified.

The practical implication: uninsured borrowers renewing in 2026 should expect to see rates above the advertised insured low. Comparing at least three to five offers — including credit unions, monoline lenders, and the Big Six banks — is the best way to narrow the gap. See the mortgage renewal rates page for term-by-term context.

See what lenders would actually quote you

Advertised insured rates assume a best-case borrower. Your actual rate depends on insurance status, balance, credit, property, and lender policy. RateShop can put current purchase, switch, renewal, and refinance options side by side — so you are comparing real offers, not just table headlines.

Compare mortgage rates

Rate disclaimer

All rates, yields, and market figures on this page are general educational information gathered from public sources on or about September 7, 2026 and may be out of date, incomplete, or superseded without notice. RateShop does not guarantee any rate, approval, or product availability. Actual mortgage rates depend on lender criteria, credit profile, verified income, property type and value, mortgage purpose, down payment or equity, insurance status, amortization, and documentation. The comparison rates cited were publicly displayed by Ratehub on September 4, 2026 and WOWA on September 4, 2026, and may use different assumptions — they do not represent a RateShop offer or approval. The Bank of Canada's target overnight rate (2.25% as of September 2, 2026), Government of Canada bond yields (5-year 3.41% on latest data), the next policy decision date (October 28, 2026), and prime (~4.45%) reflect public information available at the time of writing and may change. Bond-yield and market-implied probability moves cited are short-window observations, not forecasts or guarantees of future rate direction. CMHC premium figures are approximate 2026 benchmark values; actual premiums depend on down payment, province, and insurer. This article does not provide personalized mortgage, legal, tax, or financial advice, and does not guarantee approval or a specific rate. Always confirm current terms with your lender or a qualified professional.

Frequently asked questions

What is the difference between an insured and an uninsured mortgage in Canada?

An insured mortgage (high-ratio) has a down payment below 20% and carries mortgage default insurance from CMHC, Sagen, or Canada Guaranty. Because the lender is protected, insured mortgages qualify for the lowest rates. An uninsured mortgage has 20%+ down (or falls into an ineligible category such as a refinance, rental, or purchase above $1.5M), so lenders price in more risk and rates are typically 0.25%–0.50%+ higher. See current Canadian mortgage rates.

How much lower are insured mortgage rates than uninsured rates in 2026?

As of September 2026, insured 5-year fixed rates started around 4.09% (Ratehub) / 3.94% (WOWA), while uninsured pricing on the same term was typically 0.25%–0.50% higher depending on lender, province, and balance. The gap is not fixed — it varies by file. Run your real numbers through the mortgage payment calculator and compare live offers.

Does CMHC mortgage insurance affect my mortgage rate?

CMHC insurance does not change the rate itself, but it unlocks access to the insured tier. Borrowers with less than 20% down pay an insurance premium (added to the mortgage or paid upfront) in exchange for the lower rate. On a $500,000 purchase with 10% down, the premium is roughly $11,900, but the rate savings may offset a meaningful share over the term. Weigh both the premium cost and the rate reduction before deciding.

Who qualifies for insured mortgage rates in Canada?

You qualify for insured rates when all of these apply: down payment below 20%, owner-occupied property, purchase price under $1.5 million, and not a refinance. If any condition fails — for example the property is above $1.5M, it is a rental, or you are refinancing — the file is uninsured. Insurable files (20%+ down, owner-occupied, under $1.5M) may still qualify for the insured rate if the lender places insurance.

Should I choose insured or uninsured at renewal in 2026?

This page does not give personalized advice. At renewal, insurance status usually carries through from the original file. Switching lenders may open insurance options, but renewal switches are often requalified. Compare at least three offers, model payments at higher rates, and check the mortgage renewal rates and current Canadian rates pages for context before deciding.

Insured vs uninsured mortgage rates Canada 2026