Definition
The Canada Deposit Insurance Corporation (CDIC) is a federal body that protects eligible deposits of depositors at member institutions (chartered banks, certain trust and loan companies) in case of insolvency. Coverage is $100,000 per deposit category (deposit accounts, RRSPs, TFSAs, etc.).
In the mortgage context, CDIC is relevant in two ways: (1) account balances used as a down payment are protected if held at a member institution, and (2) some consumers confuse deposit insurance with CMHC mortgage insurance — these are entirely distinct mechanisms.
Desjardins caisses populaires in Quebec are not CDIC members; they fall under the Régie de l'assurance-dépôts du Québec (RADQ), which offers similar protection.