What is mortgage loan insurance?

If you need a mortgage for more than 80% of the purchase price of your home (i.e. a high-ratio mortgage), you’re required by law to have this insurance, aka mortgage default insurance. It protects the lender if you default on mortgage payments. (It’s not the same as mortgage life insurance, which pays the lender if you die.) Mortgage loan insurance is available from the Canada Mortgage and Housing Corporation (CMHC),Genworth Financial Canada and Canada Guaranty Mortgage Insurance Company.