Most lenders now offer insured mortgages for both new and resale homes with down payment as low as 5% . Low down payment mortgages must be insured to cover potential default of payment, and their carrying costs are therefore higher than a conventional mortgage because they include the insurance premium. With all low down payment insured mortgages, you are responsible for: Appraisal and legal fees, an application fee for the insurance, the payment of the mortgage default insurance premium (although the amount of the premium may be added to the mortgage amount).