TL;DR

The best question is not "Which brand is best?" It is "Which insurer pathway gives my specific file the strongest approval certainty at the best total cost?"

Quick answer: which insurer should you choose?

In most cases, you do not choose the insurer directly. Your lender (or broker through lender channel options) coordinates mortgage default insurance with an eligible insurer. FCAC is explicit that this insurance protects the lender if you cannot repay.

Your leverage is in choosing the right mortgage strategy and lender channel, then making sure your file is positioned for the insurer framework that fits your profile.

The strongest insurer path is the one that keeps your approval stable from pre-approval to funding.

What is the same across CMHC, Sagen, and Canada Guaranty

  • All three are approved mortgage default insurers in Canada. FCAC names CMHC, Sagen, and Canada Guaranty as the current providers.
  • Core role is lender protection. Insurance covers the lender in case of borrower default.
  • High-ratio trigger remains the same. If your down payment is under 20%, insurance is generally required.
  • Federal policy context applies to all. Finance Canada reforms effective December 15, 2024 increased the insured cap to $1.5 million and expanded 30-year insured amortization for first-time buyers and buyers of new builds.

If your file is clean and conventional, insurer branding is usually less important than lender quality, timeline management, and total borrowing cost.

Where differences actually matter for borrowers

This is where most online comparisons stay too shallow. In real files, the decisive differences are rarely a marketing slogan.

Decision factor What to verify Why it matters
Premium structure Base premium band + any applicable surcharges/overlays Small percentage differences can materially affect lifetime interest cost.
Program fit How your file is treated for self-employed income, new-to-Canada profile, rental intent, or gifted/borrowed down payment Program fit can change approval certainty and required conditions.
Documentation tolerance Evidence expected for income, source of funds, and liabilities Stronger alignment means fewer last-minute delays.
Lender-insurer execution Turnaround and underwriting communication quality in your lender channel Execution quality often determines whether a tight closing date is realistic.

Premium comparison: do not stop at headline percentages

CMHC publishes a consumer premium schedule with common base tiers (for example, 4.00% at 95.01% LTV, 3.10% at 90.01% LTV, and 2.80% at 85.01% LTV). Sagen's premium chart shows similar base anchors for standard owner-occupied purchases, with additional program-specific grids.

Canada Guaranty publishes product and premium pathways across borrower profiles, including high-LTV options in its product suite.

The practical takeaway: compare your exact scenario, not generic "best rate" promises. Your final premium outcome depends on file details and program pathway.

CMHC vs Sagen vs Canada Guaranty comparison in Canada planning discussion for Canadian borrowers
Rate bands are only step one. Real cost comes from the complete file and product pathway.

Insurer-by-insurer: what borrowers usually notice

CMHC

CMHC publishes strong consumer education and transparent baseline premium references. For many borrowers, CMHC is the familiar benchmark when comparing insured mortgage economics.

Sagen

Sagen publishes a detailed premium chart and product resources covering scenarios such as New to Canada, Business for Self, Purchase Plus Improvements, and portability pathways. This can be useful when your file has non-standard elements.

Canada Guaranty

Canada Guaranty publishes a broad products-at-a-glance matrix with programs such as New to Canada, Self-Employed Advantage, Flex 95, and Borrowed Down Payment Advantage. For some files, this creates additional structuring options early in planning.

None of this means one insurer is universally "easier." It means your file quality and lender pathway need to match the right program logic before offer day.

A better decision framework before you write offers

  1. Lock your budget range first. Use a stress-tested payment number, not only a maximum pre-approval figure.
  2. Confirm down payment evidence early. Source-of-funds documentation quality changes insurer confidence.
  3. Pre-screen your borrower profile risks. Income type, property intent, and debt mix can shift insurer fit.
  4. Run at least two insurer-path scenarios. Compare total cost, conditions, and close certainty side by side.
  5. Protect timeline with financing conditions. Keep enough runway to absorb underwriting friction without panic decisions.
CMHC vs Sagen vs Canada Guaranty comparison in Canada documents and calculator in warm sunset light
Choose your insurer pathway like a risk manager, not like a rate shopper.

Alternatives when the current insurer path is weak

This is the competitor-alternatives mindset most borrowers skip. If one pathway feels fragile, explore structured alternatives before you waive conditions:

  • Increase down payment to move into a lower LTV/premium band.
  • Adjust purchase price to improve debt-service resilience and reduce policy friction.
  • Delay offer timing by 30 to 90 days to strengthen documentation or reduce revolving debt balances.
  • Rework lender channel so the file is submitted where program fit and execution strength are better aligned.

A great mortgage decision is often one careful adjustment away, not one last-minute concession away.

Common borrower mistakes on insurer comparisons

  • Anchoring: locking onto one quoted premium without testing total five-year outcome.
  • Present bias: prioritizing immediate purchase speed over approval durability.
  • Authority bias: assuming one insurer name automatically means best fit for every file.
  • Decision fatigue: ignoring documentation quality until the final week before closing.

Countermove: use a written comparison sheet with pass/fail thresholds for cost, resilience, and execution certainty.

Best next step

If you are buying with less than 20% down, test your insurer path now, not after your offer is accepted.

Sources