Definition
An uninsurable mortgage is excluded from the mortgage insurance program (CMHC, Sagen, Canada Guaranty) under federal rules. This exclusion applies in several cases:
- **Purchase price ≥ $1,000,000**: luxury properties cannot be insured - **Refinancing**: refinancing cannot be insured (except special CMHC cases) - **Amortization > 25 years**: 20% down allows up to 30 years, but without insurance - **Non-conforming property**: atypical, commercial, land-only properties - **Secondary residence/rental**: some configurations exclude insurance
Financial consequences: without access to guaranteed securitization (CMBs), the lender borrows at higher cost. This added cost is passed on — uninsurable rates are generally 0.10-0.30% higher than equivalent insurable or insured rates.