***This article replaces a piece we published during the COVID years when CMHC temporarily tightened their rules and some buyers were afraid they had lost purchasing power. Current rules, as of 2026, are back to business as usual.

If you’re buying a home with less than 20 percent down, you’re entering the world of insured mortgages.
Most people know the name Canada Mortgage and Housing Corporation, often just called CMHC. Fewer realize there are two other insurers doing the same job behind the scenes.

Understanding how these insurers work, and how they differ, can explain why mortgage rules sometimes feel inconsistent or suddenly change direction.

Who insures mortgages in Canada?

Canada has three mortgage insurers for high-ratio mortgages (those with under 20 percent down):

• Canada Mortgage and Housing Corporation (CMHC)
• Sagen (formerly Genworth Canada)
• Canada Guaranty

From a buyer’s point of view, the mortgage you get from your bank can look identical regardless of which insurer is backing it. But structurally, these organizations are not the same.

Why CMHC is different

CMHC is a Crown corporation. That matters.

As a Crown corporation, CMHC:

• Is owned by the federal government
• Has a public policy mandate tied to housing stability
• Ultimately exposes taxpayers to risk when insured mortgages default

Sagen and Canada Guaranty, by contrast, are private mortgage insurers. They’re regulated, but they operate as private businesses, managing risk for shareholders rather than taxpayers.

This difference helps explain why CMHC has, at times, taken a more conservative or publicly visible stance, particularly during periods of economic uncertainty.

What happened in 2020 (and why it caused confusion)

In 2020, at the height of pandemic uncertainty, CMHC tightened its underwriting rules. Those changes included:

• Lower debt service ratio limits
• Higher minimum credit score requirements
• Restrictions on certain down payment sources

At the time, Sagen and Canada Guaranty did not follow CMHC’s lead.

The result was confusing for buyers. One insurer might decline a file that another would accept, even though the borrower, the home, and the lender were the same.

Importantly, many of CMHC’s 2020 changes were temporary and were rolled back in 2021. But the episode left a lasting impression that “CMHC rules are different,” which still comes up in conversations today.

How insured mortgage rules actually work today (2026)

There are three layers involved in any insured mortgage approval:

1. Federal rules

These apply to all insurers and set the broad framework. Examples include:

• Minimum down payment thresholds
• Stress testing requirements
• Maximum purchase price for insured homes

2. Insurer guidelines

Each insurer sets its own risk policies within those federal rules. This is where differences can appear, particularly around:

• Credit history interpretation
• Non-traditional down payment sources
• File-level risk tolerance

3. Lender overlays

Banks and credit unions can add their own internal rules on top of insurer requirements, which is why two lenders can give different answers on the same file.

Understanding this layered system helps explain why a “no” from one lender isn’t always the end of the road.

The current insured mortgage landscape (high level)

As of 2026, insured mortgages generally reflect:

• A higher price cap than in the past, allowing insured mortgages on more expensive homes
• More flexibility than during the brief tightening period in 2020 and 2021
• Close attention to whether monthly payments are affordable and whether borrowers have a history of paying debts on time
• Careful review of where the down payment comes from, rather than outright bans

The rules are more stable now than they were during the pandemic years, but they’re still designed to limit risk when buyers are stretching close to the maximum.

What this means for buyers

A few practical takeaways:

• CMHC being government-owned doesn’t make it better or worse than the others. It just explains why it tends to be more cautious at times.
• If one insurer says no, it doesn’t automatically mean you can’t buy a home.
• The highest amount you’re approved for is rarely the number that leads to the best quality of life.

Most buyers who feel good about their decision focus less on buying at the very top of the budget and more on choosing a purchase that still feels comfortable months and years down the road.

---

Where this leaves you

This stuff isn’t exciting, but it matters because it can be the difference between buying a home now and facing longer delays than you planned. Understanding how mortgage insurance actually works can save you a lot of confusion and help you focus on options that truly fit.

For a bit more about the approval process, click here.