High-Ratio vs Conventional Mortgage Rates

See how your down payment and mortgage insurance status can affect your rate, payment, and lender options.

Market Pulse

Canada

July 2, 2026

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Compare insured and conventional mortgage rates before choosing your down payment strategy

High-ratio and conventional mortgages can price differently because mortgage insurance changes lender risk. Use RateBuddy to compare insured and uninsured mortgage rate options side by side, including rate differences, payment impact, and lender choices across popular terms.

Compare High-Ratio vs Conventional Mortgage Rates

Live as of: July 2, 2026 | Canada

Customize your insured vs conventional mortgage comparison

Enter your purchase price, down payment, and amortization to compare high-ratio and conventional mortgage rates side by side. RateBuddy helps show how down payment size and mortgage insurance status may affect your rate options.

Term & Type	High-Ratio Rate	Conventional Rate
5 Years Fixed Rate	3.89% 5-Year · Fixed Save $4,149 vs. Conventional over 5 Years Monthly Pmt $1,487 Interest Cost (5 Year) $51,989 Inquire	4.19% 5-Year · Fixed Costs $4,149 more than High-Ratio over 5 Years Monthly Pmt $1,534 Interest Cost (5 Year) $56,138 Inquire
5 Years Variable Rate	3.30% 5-Year · Variable Save $6,731 vs. Conventional over 5 Years Monthly Pmt $1,396 Interest Cost (5 Year) $43,878 Inquire	3.79% 5-Year · Variable Costs $6,731 more than High-Ratio over 5 Years Monthly Pmt $1,471 Interest Cost (5 Year) $50,609 Inquire
4 Years Fixed Rate	4.24% 4-Year · Fixed Save $559 vs. Conventional over 4 Years Monthly Pmt $1,542 Interest Cost (4 Year) $46,082 Inquire	4.29% 4-Year · Fixed Costs $559 more than High-Ratio over 4 Years Monthly Pmt $1,550 Interest Cost (4 Year) $46,640 Inquire
3 Years Fixed Rate	4.04% 3-Year · Fixed Costs $421 more than Conventional over 3 Years Monthly Pmt $1,511 Interest Cost (3 Year) $33,327 Inquire	3.99% 3-Year · Fixed Save $421 vs. High-Ratio over 3 Years Monthly Pmt $1,503 Interest Cost (3 Year) $32,907 Inquire
3 Years Variable Rate	3.60% 3-Year · Variable Save $3,780 vs. Conventional over 3 Years Monthly Pmt $1,442 Interest Cost (3 Year) $29,632 Inquire	4.05% 3-Year · Variable Costs $3,780 more than High-Ratio over 3 Years Monthly Pmt $1,512 Interest Cost (3 Year) $33,411 Inquire

Pro Tip: The High-Ratio Advantage

Sometimes, a smaller down payment can mean a lower interest rate.

It sounds counter-intuitive, but here's why lenders sometimes offer better rates on high-ratio (insured) mortgages:

Lender Security Mortgage default insurance protects the lender, not you. If you default, the insurer pays the lender, eliminating their risk.
Lower Risk = Lower Rate Because the loan is insured and risk-free for the lender, they are often willing to offer their most competitive interest rates.
The Trade-Off This lower rate comes at the cost of the insurance premium, which is added to your mortgage principal. Use the calculator below to see if the interest savings outweigh the premium cost.

Mortgage Rates by Lender

Compare rates from Canada's top banks and credit unions.

RBC

RBC Royal Bank Big 5 Bank

TD Canada Trust Big 5 Bank

BNS

Scotiabank Big 5 Bank

BMO

BMO Bank of Montreal Big 5 Bank

CIBC

CIBC Big 5 Bank

NBC

National Bank Major Bank

ING

Tangerine Digital Bank

ATB

ATB Financial Alberta Focus

DES

Desjardins Credit Union

MER

Meridian Credit Union

Connect First Credit Union

First West Credit Union

Calculate Your Upfront Costs

Your down payment is the key. Use our quick estimator to see how it affects your mortgage insurance premium, then dive deeper with our full suite of tools.

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Estimated Mortgage Insurance Premium

Based on standard CMHC premium rates. For illustrative purposes only.

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How to compare high-ratio vs conventional mortgage rates in Canada

A high-ratio mortgage usually applies when the buyer has less than 20% down and mortgage loan insurance is required. A conventional mortgage usually applies when the buyer has at least 20% down and mortgage loan insurance is not required in the same way.

Why insured mortgage rates can be lower

Mortgage loan insurance protects the lender if the borrower defaults. Because this lowers lender risk, insured mortgage rates can sometimes be lower than conventional rates, even though the borrower may still pay an insurance premium.

Why conventional mortgages can still be attractive

Conventional mortgages can help buyers avoid the added mortgage insurance premium and may offer more flexibility for larger down payments, higher-value properties, refinancing, and certain amortization options.

How to use this comparison table

Compare the high-ratio and conventional rate columns for each term, then look beyond the headline rate. Consider insurance premiums, estimated payments, total borrowing cost, prepayment options, penalties, and lender conditions before choosing the better mortgage structure.

Your Comparison Questions, Answered

Get clear, professional answers to the most important questions when comparing high-ratio and conventional mortgages.

What is a High-Ratio Mortgage? What is a Conventional Mortgage? Why do High-Ratio Mortgages Have Lower Rates? Which One is the Best Choice? How Much Does Insurance Cost?

A high-ratio mortgage is any home loan where the down payment is less than 20% of the purchase price. In Canada, all high-ratio mortgages must be insured against default by an insurer like CMHC, Sagen, or Canada Guaranty. The cost of this insurance premium is typically added to your total mortgage principal.

A conventional mortgage is a home loan where the down payment is 20% or more of the purchase price. Because you have significant equity in the home from the start, mortgage default insurance is not required. This means you avoid the cost of the insurance premium, resulting in a smaller total loan amount.

It seems counter-intuitive, but lenders often offer their most competitive interest rates on high-ratio mortgages. This is because the mandatory mortgage insurance protects the lender, not you. If you were to default on the loan, the insurer pays the lender back, completely eliminating the lender's financial risk. Lower risk for them often translates to a lower rate for you.

There's no single 'best' choice; it depends entirely on your financial situation. A high-ratio mortgage allows you to enter the housing market sooner with a smaller down payment. A conventional mortgage requires more savings upfront but allows you to avoid the insurance premium and build equity faster. The key is to weigh the cost of the insurance premium against the interest savings from a potentially lower rate.

The mortgage default insurance premium is calculated as a percentage of your loan amount, and the percentage gets higher as your down payment gets smaller. For example, a 5% down payment might have a 4.0% premium, while a 15% down payment might have a 1.8% premium. This premium is then added to your mortgage balance and paid off over the life of the loan.

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