Insured vs. Insurable vs. Uninsurable Mortgages: What’s the Difference and Why It Matters

When navigating the mortgage landscape, you’ll often hear the terms insured, insurable, and uninsurable. These classifications can impact everything from the interest rate you’re offered to which lenders are available to you.

At Mike Hidlebaugh Mortgage, I believe in keeping things simple and transparent—so here’s what you need to know about each category and how it can affect your mortgage strategy.

Signing the mortgage commitment.

What Is an Insured Mortgage?

Insured mortgages apply to homebuyers who are putting less than 20% down on a property. In this case, mortgage default insurance is required and paid for by the borrower. This insurance protects the lender in case you can’t make your payments—but it also opens the door to better interest rates.

To qualify:

Your down payment is under 20%

The property value is $1.5 million or less

The home is owner-occupied

Your amortization is 30 years or less for first time home buyers and all home buyers buying newly constructed homes

Insurance premium is paid by the borrower

Key benefit:

Since the lender’s risk is reduced, you often get access to the lowest available mortgage rates in Canada.

What Is an Insurable Mortgage?

Insurable mortgages are a bit more behind-the-scenes. These are mortgages where the borrower puts down 20% or more, but the deal still meets all the criteria for insurance—so lenders may choose to insure it themselves (without cost to you).

To qualify:

20%+ down payment

$1 million or less purchase price

Owner-occupied

25-year amortization or less

Lenders may still insure it, covering the premium

Key benefit:

Even though you’re not paying for insurance, your mortgage still qualifies for “insured-style” low rates because the lender can choose to insure it on their end.

High end home worth more than $1.5 million.

What Is an Uninsurable Mortgage?

Uninsurable mortgages do not qualify for insurance—either because of the property, the terms, or the purpose of the mortgage. These include:

Refinances

Homes priced over $1.5 million

Amortizations longer than 25 years

Rental or investment properties

Properties that don’t meet insurer guidelines

Key difference:

Because the lender takes on more risk, rates are typically higher, and fewer lenders are willing to fund them.

But that doesn’t mean it’s a bad mortgage—it just means we’ll get more creative in finding the right lender and structure for you.

Why This Matters to You

Whether your mortgage is insured, insurable, or uninsurable can impact:

Your interest rate

Which lenders you qualify with

Your approval conditions

As a licensed Saskatoon mortgage associate with experience across all mortgage types, I work with you to ensure your financing is matched to your goals, budget, and timeline—no matter which category your mortgage falls under.

Let’s Find the Right Fit

Have questions about which type of mortgage you’d qualify for? Or wondering if a refinance or investment property fits into your long-term plan?

Let’s chat. At Mike Hidlebaugh Mortgage, my mission is to deliver mortgage advice that’s tailored, transparent, and always in your best interest.

Call, text, or email today and let’s build your mortgage strategy together.