The three insurers at a glance — who they are and what they do
Canada has three mortgage default insurance providers. CMHC (Canada Mortgage and Housing Corporation) is a federal Crown corporation established in 1946 — it is the oldest, largest, and most well-known. Sagen, formerly Genworth Canada, was privatized in the 1990s and is now a publicly traded company. Canada Guaranty is the newest entrant, a private company backed by the Ontario Teachers' Pension Plan.
All three serve the same core function: they insure high-ratio mortgages (less than 20% down payment) against borrower default, protecting the lender. This insurance is what enables Canadian lenders to offer mortgages with as little as 5% down. Without it, lenders would require much larger down payments to manage their own risk.
From the borrower's perspective, you do not choose your insurer — the lender does. But understanding the differences matters because a file that one insurer declines may be approved by another. A broker who knows the underwriting nuances of all three can route your application to the insurer most likely to approve it at the best terms.
All three insurers serve the same purpose — but their underwriting approaches differ in ways that can determine whether your mortgage application is approved.
Side-by-side comparison — CMHC vs Sagen vs Canada Guaranty
The table below summarizes the key differences across the dimensions that most often affect borrower outcomes. Note that all three follow the same federal regulatory framework — the differences are in interpretation, flexibility, and specific program offerings.
| Dimension | CMHC | Sagen | Canada Guaranty |
|---|---|---|---|
| Ownership | Federal Crown corporation | Public company (TSX) | Private (Ontario Teachers') |
| Market share | Largest (~55-60%) | Second (~25-30%) | Third (~10-15%) |
| Self-employed | Strictest — requires 2 years NOAs | More flexible — may accept 1 year | Flexible — strong business financials accepted |
| Rental properties | Conservative — caps on number of units | Moderate flexibility | Most flexible — multi-unit friendly |
| Extended amortization (>25yr) | Available with 0.20% surcharge | Available with surcharge | Available — often most flexible terms |
| New to Canada | Standard program — 3 months employment | Flexible programs for newcomers | Competitive newcomer programs |
| Maximum purchase price | $1,000,000 | $1,000,000 | $1,000,000 |
| Premium rates (95% LTV) | 4.0% | ~3.85-4.0% | ~3.85-4.0% |
Premium rates are subject to change and may vary by lender agreement and specific borrower profile. Always confirm current rates with your broker.
CMHC — the Crown corporation with the broadest reach
CMHC's size and Crown corporation status give it advantages and limitations. On the advantage side, CMHC's guidelines are the most widely understood by lenders, meaning a file that meets CMHC standards will be accepted almost everywhere. CMHC also has the deepest program offerings, including the MLI Select program for rental housing that offers preferential pricing for properties meeting affordability, accessibility, or climate criteria.
On the limitation side, CMHC tends to be the most conservative of the three insurers. It generally requires two full years of Notice of Assessment for self-employed borrowers, takes a strict view of rental income offset, and has firm caps on debt-service ratios. Properties with unconventional characteristics — mixed-use, very small square footage, unusual construction types — are more likely to be declined by CMHC than by the private insurers.
CMHC is the largest and most widely accepted insurer — but its conservative guidelines mean some borrower profiles need to look to Sagen or Canada Guaranty.
Sagen — the private alternative with self-employed flexibility
Sagen (rebranded from Genworth Canada in 2020) positions itself as the more flexible alternative to CMHC, particularly for self-employed borrowers. Where CMHC typically requires two years of Notice of Assessment with stable or increasing income, Sagen may accept one year of strong business financials or alternative income verification approaches.
Sagen also offers programs specifically designed for professionals (doctors, lawyers, accountants) who have high earning potential but may have thin credit or short employment history. Its New to Canada programs are competitive, and it tends to be more accommodating of properties in smaller markets or rural areas that CMHC may view as higher risk.
Canada Guaranty — the rental-property and extended-amortization specialist
Canada Guaranty is the smallest of the three insurers but has carved out a reputation for flexibility in specific niches. It is often the preferred insurer for rental property mortgages — particularly multi-unit properties where the rental income covers most or all of the carrying costs. Where CMHC may restrict the number of units or the proportion of rental income that can be counted, Canada Guaranty tends to take a more pragmatic approach.
Canada Guaranty is also known for accommodating extended amortizations (over 25 years) and for being willing to insure properties in markets that CMHC views as higher risk. For self-employed borrowers, Canada Guaranty offers 'stated income' programs where business financials — bank statements, business financial statements, accountant letters — can supplement or replace traditional Notice of Assessment documentation.
Canada Guaranty is often the best fit for rental properties, extended amortizations, and borrowers with non-traditional income documentation.
How a broker navigates the three insurers for your file
The lender — not the borrower — chooses which insurer to use. But a skilled mortgage broker can influence this decision by understanding which insurer's guidelines best match your file. Before submitting, a broker will review your income documentation, property type, down payment source, credit profile, and debt ratios against the published underwriting guidelines of all three insurers.
If your file is straightforward — salaried employee, good credit, standard property, conventional down payment — all three insurers will likely approve it, and the choice becomes largely irrelevant to you. But if your file has any complexity — self-employment, rental income, non-traditional property, thin credit, recent arrival to Canada — the insurer choice can be decisive. A broker who only submits to CMHC by default may get a decline that Sagen or Canada Guaranty would have approved.
The most valuable thing a broker does at the insurer level is pre-assess. Before a formal application, they can have informal conversations with insurer underwriters to gauge how a file would be treated. This pre-screening can save weeks of back-and-forth and prevent a decline that would complicate subsequent applications.
Frequently asked questions
Do I get to choose which mortgage insurer is used for my mortgage?
No — the lender selects the insurer. However, a mortgage broker who understands the underwriting differences between CMHC, Sagen, and Canada Guaranty can route your application to a lender that works with the insurer most likely to approve your specific borrower profile. You can ask your broker which insurer is being used and why.
Are CMHC premiums different from Sagen or Canada Guaranty premiums?
For standard files, premium rates are nearly identical across all three insurers. CMHC publishes its rates publicly: 4.0% at 95% LTV, 3.1% at 90% LTV, 2.8% at 85% LTV. Sagen and Canada Guaranty premiums are typically within 0.10% to 0.15% of CMHC rates. The more significant difference is in underwriting flexibility, not premium cost.
Which insurer is best for self-employed borrowers?
Sagen and Canada Guaranty generally offer more flexible self-employed underwriting than CMHC. Both may accept one year of strong business financials instead of CMHC's standard two years. Canada Guaranty's stated income program can be especially useful for self-employed borrowers with strong businesses but variable year-over-year personal income. A broker can assess which insurer fits your specific self-employment structure.
Can a file declined by CMHC be approved by Sagen or Canada Guaranty?
Yes. This is one of the most common scenarios where the insurer choice matters. CMHC's conservative guidelines mean it declines files that the private insurers would accept. Common decline reasons include self-employment income variability, rental property characteristics, non-traditional down payment sources, and properties in markets CMHC considers higher risk.
What is CMHC's MLI Select program?
MLI Select is CMHC's program for rental housing that offers preferential mortgage insurance pricing for properties that meet criteria in at least two of three areas: affordability (rents at or below market), accessibility (universal design features), and climate compatibility (energy efficiency, reduced emissions). The program can reduce insurance premiums by up to 50% compared to standard CMHC rental pricing.
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