A Guide to Lenders Mortgage Insurance in Canada

Lenders Mortgage Insurance (LMI) is an important factor for first-time home buyers and families purchasing a home with less than a 20% down payment. This insurance protects the lender if the borrower defaults, with costs ranging from 0.6% to 4.5% of the mortgage amount. For many families, LMI can make homeownership more accessible by allowing a lower upfront investment. Understanding how LMI works, when it’s required, and how to minimize costs can help first-time buyers make informed financial decisions and secure the right home for their needs.