How CMHC, Sagen, and Canada Guaranty Mortgage Insurance Compare

When buying a home in Canada with less than a 20% down payment, mortgage insurance isn’t optional — it’s required. But what many buyers don’t realize is that there are three different mortgage insurers in Canada: CMHC, Sagen, and Canada Guaranty.

Each insurer follows federal guidelines, but their programs, qualifications, and flexibilities can vary. Understanding these differences helps first-time buyers, investors, and homeowners choose the product that best aligns with their goals.

This guide breaks down how these three insurers compare — from premiums to flexibility, program features, and approval requirements.

What Is Mortgage Default Insurance?

Mortgage insurance protects the lender if a borrower defaults on their mortgage. In return, buyers get access to:

• Lower down payment options (as low as 5%)

• Competitive interest rates

• Higher approval flexibility

The insurance cost is added to the mortgage or paid upfront, depending on the lender’s policy.

CMHC vs. Sagen vs. Canada Guaranty: A Complete Comparison

Below is a breakdown of the key differences between the three mortgage insurers in Canada.

1. Premium Rates

All three insurers — CMHC, Sagen, and Canada Guaranty — offer very similar premium structures because they follow federal guidelines.
Premiums are based on loan-to-value and down payment size:

• 5% down: Highest premiums

• 10%–14.99% down: Medium premiums

• 15%–19.99% down: Lowest premiums

While the rates are nearly identical, certain promotions or lender-specific offers may make one insurer slightly more cost-effective.

2. Qualification Guidelines

CMHC (Canada Mortgage and Housing Corporation)

• Most conservative guidelines

• Requires strong credit and strict debt ratios

• Maximum amortization: 25 years

• Income must be verifiable

• Allows fewer exceptions or alternative income sources

CMHC is known for being the strictest of the three.

Sagen (formerly Genworth Financial)

• More flexible with borrowers who have non-traditional income

• Allows some expanded GDS/TDS ratios depending on credit score

• Offers specialty programs for self-employed buyers

• Popular with lenders when buyers need more qualification room

Sagen strikes a balance between flexibility and conservative underwriting.

Canada Guaranty

• Often considered the most flexible insurer

• Strong programs for self-employed, newcomers, and first-time buyers

• Competitive qualification ratios

• More willing to consider exception-based approvals when warranted

Many brokers prefer Canada Guaranty for cases requiring extra nuance.

3. Program Differences

CMHC Programs

• First-Time Home Buyer Incentive (shared equity)

• MLI Select (multi-unit energy-efficient program)

• Green Home program (rebates for energy upgrades)

Sagen Programs

• Business for Self program (self-employed with limited documentation)

• New to Canada program

• Homeowner Assistance Program (for borrowers in hardship)

Canada Guaranty Programs

• Flex 95 Advantage (high-ratio, low down payment program)

• New to Canada program

• Self-employed programs with looser documentation requirements

• Energy-efficient incentives

Canada Guaranty is known for fast turnaround times and strong service.

4. Who Is Each Insurer Best For?

CMHC is best for:

• Borrowers with strong credit and stable employment

• Traditional income earners

• Buyers seeking government-backed programs

• Multi-unit property buyers (MLI Select)

Sagen is best for:

• Self-employed borrowers

• Buyers needing slightly more flexible ratios

• Newcomers to Canada

• Borrowers with strong alternative or commissioned income

Canada Guaranty is best for:

• Buyers with unique situations

• Borrowers who need guideline flexibility

• Self-employed buyers with limited documentation

• Applications requiring human review vs. automated decline

5. Turnaround Time & Customer Service

Brokers often rank Canada Guaranty highest for customer service and quick approvals.

Sagen also performs well, especially with non-traditional applications.

CMHC, as a government agency, may have slower turnaround times due to strict processes — but they offer security and established national programs.

6. Premium Refunds & Energy Programs

All three insurers offer rebates for energy-efficient homes, including:

• ENERGY STAR® certified properties

• New builds meeting efficiency standards

• Renovation upgrades improving energy ratings

Refunds typically range from 15%–25% of the premium depending on program criteria.

Final Thoughts: Which Insurer Should You Choose?

While premium costs are similar, the insurer your lender or broker chooses can impact your approval — especially if your credit, income, or down payment is less than perfect.

• CMHC = strictest guidelines

• Sagen = balanced flexibility

• Canada Guaranty = most adaptable

A mortgage professional can determine which insurer gives you the best chance of approval with the most favourable terms.

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