Conventional – ‘Low Ratio’ – The mortgage loan amount is equal or less than 80% of the market value of the home. In other words, you have a down payment of 20% or more.
Insured – ‘High Ratio’ – The mortgage loan amount is greater than 80% but less than 95% of the market value of the home. In other words, you have less than 20% of a down payment. High ratio mortgages can be insured by Genworth Financial Canada, a private insurer, or Canada Mortgage and Housing Corporation (CMHC), which operate under the National Housing Act (NHA).