Renewal Rates, Costs and 2026 Rules
Insured vs uninsured mortgage renewal rates: why your insurance status matters
Why insured, insurable and uninsurable mortgages get different renewal rates in Canada, how to find your status, and what happens to insurance when you switch or refinance.
Insured mortgages usually get the lowest renewal rates in Canada because mortgage default insurance from CMHC, Sagen or Canada Guaranty protects the lender if you default, and the insurance stays with the loan for its life, even after your equity has grown. Uninsured mortgages are priced in two broad groups: insurable loans that meet the insurance rules and can be insured in bulk by the lender, and uninsurable loans, such as refinances or loans with amortizations beyond the insured limit, which usually cost more. Knowing which group you are in tells you which rate tier to ask for, and whether a switch or refinance will move you into a more expensive one.
This guide is part of the mortgage renewal rates overview. Rates are illustrative examples.
The three pricing groups
| Group | How it arises | Who bears the default risk | Rate tendency |
|---|---|---|---|
| Insured (high-ratio) | Bought with less than 20% down; you paid the insurance premium, usually added to the mortgage | The mortgage insurer | Usually lowest |
| Insurable (conventional) | 20% or more down, but the loan met insurance rules on price, amortization and use | The lender, unless it buys bulk insurance | Often middle |
| Uninsurable | Refinance, amortization over the insured limit, home price above the insured cap, many rentals | The lender | Usually highest |
The federal rules for insured mortgages include a maximum purchase price of under $1.5 million and a maximum amortization of 25 years, extended to 30 years for first-time buyers and buyers of newly built homes for mortgages insured from 15 December 2024. These limits apply when the insurance is obtained. Check the current rules with CMHC or the Department of Finance before relying on them.
How to find out your status
Look in:
- Your original mortgage commitment or approval letter, which shows a mortgage insurance premium if the loan was insured
- Your closing documents from the lawyer or notary
- Your annual mortgage statement or online banking, which some lenders label as insured
- Your lender, if in doubt: ask "Is my mortgage insured, and by which insurer?"
If you put less than 20% down on your purchase, your mortgage is almost certainly insured.
Worked example: what the tier is worth
Illustrative figures: $350,000 balance at renewal, 20 years left, five-year fixed, semi-annual compounding.
| Tier | Rate | Payment | Interest over 5 years |
|---|---|---|---|
| Insured | 4.04% | $2,122.11 | $64,095.35 |
| Uninsured | 4.39% | $2,186.11 | $69,811.13 |
On these numbers, being priced as insured saves $64 a month and $5,715.78 of interest over the term. If your mortgage is insured and a lender quotes you an uninsured rate, point it out.
What happens to insurance when you switch
In general, insurance can move with an insured mortgage to a new lender at renewal, so you keep insured pricing, as long as the move is a straight switch: no increase in the balance and no extension of the amortization beyond what the insurance allows. The new lender arranges the transfer with the insurer. Ask the new lender to confirm in writing that it will treat the loan as insured.
Since insured switches at renewal are not re-tested at the qualifying rate, an insured borrower can often move more easily than an uninsured one could before November 2024. See the stress test when switching.
What happens if you refinance
A refinance means borrowing more than your current balance, for example to consolidate debt or fund a renovation. Under OSFI's rules, federally regulated lenders can refinance up to 80% of the home's value, and refinances generally cannot be insured. The exception, since 15 January 2025, is an insured refinance to add a secondary suite (up to 90% of the value including the suite, on homes up to $2 million); check CMHC for current terms. The whole mortgage, including the original balance, typically becomes an uninsurable loan priced at a higher rate.
Illustrative example: if refinancing your $350,000 balance to $400,000 moves the whole loan from 4.04% to 4.49%, the extra cost is not just interest on the $50,000. The higher rate applies to all $400,000. Compare the refinance cost with alternatives such as a separate line of credit before deciding.
Extending the amortization
On an insured mortgage, you cannot generally extend the amortization beyond the insured maximum when you renew, except under temporary relief arrangements for borrowers in difficulty. On an uninsured mortgage, the lender may allow an extension, sometimes up to 30 years, but some lenders then price it as uninsurable. See extending your amortization at renewal and the Canadian Mortgage Charter.
Checklist: insurance status before you shop
- Confirm whether the mortgage is insured and with which insurer
- Note the original amortization and the remaining amortization
- Decide whether you need to borrow more (refinance) or only renew
- Ask each lender for the rate for your exact tier: insured, insurable or uninsurable
- Ask whether extending the amortization changes the tier
- Ask whether any cash-back or special offer is limited to certain tiers
Compare offers in the renew-vs-switch calculator.
Frequently asked questions
My equity is now over 20%. Can I cancel the insurance?
No. The premium was a one-time cost paid at the start, usually added to your balance, and it is not refunded. The insurance stays on the loan, which is why you keep access to insured pricing.
Do I pay the insurance premium again when I switch?
No, not for a straight switch where the balance and amortization do not change. Increasing the loan is a different matter and may make it uninsurable.
Why would a lender charge more for an insurable loan than an insured one?
With an insured loan the lender carries no default risk and can fund it more cheaply. With an insurable loan the lender either carries the risk or pays for bulk insurance itself.
Is a rental property mortgage insured?
Most rental and investment mortgages are not insured, although some small owner-occupied multi-unit homes can be. Expect higher rates for non-owner-occupied properties.
Sources
- Canada Mortgage and Housing Corporation — mortgage loan insurance rules and premiums
- Sagen — private mortgage default insurer
- Canada Guaranty — private mortgage default insurer
- Office of the Superintendent of Financial Institutions — refinance and loan-to-value limits
- Department of Finance Canada — federal rules for insured mortgages
