FAQ (Frequently Asked Question)

Why is a mortgage insurance premium necessary?

If your down payment is less than 20% of the property value, you’re required to pay an insurance premium. This is also considered a higher risk mortgage which in turn is insured by a mortgage insurer. A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price or also referred to a loan to value of or less than 80%, and does not normally require mortgage loan insurance.