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    Most lenders now offer insured mortgages for both new and resale homes with lower down payment requirements than conventional mortgages – as low as 5%. Low down payment mortgages must be insured to cover potential default of payment, and their carrying costs are therefore higher than a conventional mortgage because they include the insurance premium.

    With all low down payment insured mortgages, you are responsible for:

    – appraisal and legal fees
    – an application fee for the insurance
    – the payment of the mortgage default insurance premium (although the amount of the premium may be added to the mortgage amount).

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