Definition
Sagen is one of three authorized mortgage default insurers in Canada. Formerly named Genworth MI Canada until 2020, it is now majority-owned by Brookfield. Its premium grids and underwriting criteria are aligned with CMHC with some nuances.
The choice between CMHC, Sagen, and Canada Guaranty is made case by case by the lender (and indirectly by the broker) depending on file specifics: Sagen is sometimes more flexible on self-employed income (Business for Self ALT-A program) or on certain new builds in Québec.
For the borrower, the choice of insurer has little direct impact: premium is essentially the same, underwriting comparable, and insurance benefits the lender, not you. However, a file refused by CMHC may sometimes be accepted by Sagen or Canada Guaranty — that is the value-add of a broker who knows all three insurers.