CMHC vs Sagen vs Canada Guaranty 2025

Most Canadians know about CMHC mortgage insurance, but Canada actually has three government-approved mortgage default insurers. If your down payment is less than 20%, your lender will choose one of these three providers — and while the premium rates are the same, there are meaningful differences in eligibility, flexibility, and coverage.

Canada's Three Mortgage Insurers at a Glance

Do the Premium Rates Differ?

No — all three insurers charge the same standard premium rates, as set by OSFI and followed industry-wide:

Key Differences Between the Three Insurers

CMHC

• Oldest and largest — backed by the full federal government
• Slightly more conservative underwriting guidelines in some cases
• Does not insure vacation homes or investment properties
• Minimum credit score: generally 600 (some products require higher)
• Available through virtually all federally regulated lenders

Sagen (formerly Genworth Canada)

• Private insurer with somewhat more flexible guidelines for certain applicants
• Used by most major lenders as an alternative to CMHC
• Has approved certain non-traditional property types in more cases than CMHC
• Same premium rates as CMHC
• Rebranded from Genworth Canada to Sagen in 2021

Canada Guaranty

• Smallest of the three; used by select lenders
• Known for innovative programs and flexible guidelines for unique situations
• Has offered programs for newcomers to Canada and non-traditional income
• Same premium rates as CMHC
• Not available at all lenders

Can You Choose Your Insurer?

Generally, no. The lender chooses which insurer to use for your mortgage. Most lenders have relationships with one or more of the three providers. If your application is declined by CMHC's guidelines, a broker may be able to route your application to Sagen or Canada Guaranty, which sometimes approve situations CMHC won't.

Which Insurer Is Better for Self-Employed Applicants?

Sagen and Canada Guaranty have historically offered more flexible programs for self-employed Canadians, including stated income products (with rate premiums). CMHC has tightened its self-employed guidelines in recent years. A mortgage broker can advise which insurer's program best fits your income documentation.

What Happens If an Insurer Declines?

If all three mortgage insurers decline to insure your mortgage, your only options are:

• Increase your down payment to 20% or more (eliminating the need for insurance)
• Work with a B lender or private lender that applies different underwriting standards
• Improve your credit profile and reapply later