Such a mortgage agreement is arranged strictly between the lending institution and the homebuyer, without any third party intervention.
Many people find it difficult to save such a large amount of cash.
For some, it could take years to accumulate such a hefty down payment. Yet, we want the benefits that home ownership provides while we are young and raising our families. CMHC is a Crown corporation that insures high ratio mortgages for lenders. Lenders are required by law to insure all high ratio mortgages. Mortgage insurance protects the lender in the event that the buyer defaults on the mortgage.