What is the difference between a high ratio insured and a conventional mortgage?

That’s a good question. A conventional mortgage is one where the borrower is willing to put down at least 25% of the properties value as a down payment. That means if they are buying a $400000 house, they are borrowing only $300000. A high ratio insured mortgage is one where the borrower puts up less than 25% of the value of the property as a down payment. In this case the mortgage must be insured either privately or through the Canadian Mortgage and Housing Corporation, Genworth Financial, or AIG United Guarantee. If the mortgage is insured, the borrower is responsible for an additional insurance premium, this premium is paid to the mortgage insurer. If someone was to default on their mortgage, the idea is that the insurer would repay the costs to the lender. That doesn’t mean you can default on your loan, it just means the bank is covered. If you do fail to repay your mortgage it will be reflected on your credit and you are very unlikely to get a mortgage again for a very long time.