Insured and conventional mortgages
Definition
A mortgage is insured when the down payment is under 20%: the insurer (CMHC, Sagen, Canada Guaranty) covers the lender in case of default, and you pay the premium. A mortgage is conventional at 20% down and above: no premium, but the lender carries the risk alone and can be more selective. An insured loan gives access to the lowest rates but imposes a maximum price, a capped amortization, owner occupancy, and strict income criteria. A conventional loan allows 30-year amortization, non-owner-occupied buildings, and income read more flexibly at some lenders, often at a slightly higher rate. Example: at 19% down, you pay a premium of about 2.8% of the loan; at 20%, nothing. On a $400,000 price the difference is about $9,000, which can justify waiting one more month of saving.
For your plans
Check which side of the 20% threshold your file lands on once the costs and the reserve are set aside. If you are within a point or two of either, price both structures before settling the down payment.