Definition
An 'insurable' mortgage is a loan that meets mortgage insurer criteria (CMHC, Sagen, Canada Guaranty) to be insured, but is granted with a 20% or higher down payment — so technically not required to be insured.
In this case, the lender may choose to insure the loan at their own expense (they pay the insurance premium, not the borrower) to access more favorable CMB securitization rates. This insurance cost is partially passed on by offering the borrower a better rate.
Criteria to be insurable (down payment ≥ 20%): - Purchase price < $1M - Amortization ≤ 25 years - Owner-occupied or tenant-occupied property - Income qualified per insurer standards
Comparison: an **insured** mortgage (< 20% down, borrower pays premium) is slightly cheaper than insurable (lender pays), which is cheaper than **non-insurable** (> $1M or refinancing, no guaranteed securitization).