Mortgage - High Ratio
A high-ratio mortgage is a loan for up to 95% of the lending value of a property. The lending value is determined by an appraisal conducted on behalf of the lender. The lending value and the market price are usually different. Buyers must purchase mortgage insurance if they take out a high ratio mortgage. In Canada, high-ratio mortgages are insured by the Canada Mortgage and Housing Corporation (CMHC) on behalf of the federal government. Several commercial companies provide similar financing.