Properties valued at $1 million or more cannot be purchased in Canada with mortgage default insurance. Purchasing a property of $1 million dollars or more in valuation requires a downpayment of 20% or greater, calculated on the lower of the appraised value or purchase price. When the lender or appraiser assesses the subject property value to be $1 million or more, the mortgage rate used will always be the higher uninsured rate and not impacted by the amortization – up to 30 years allowable.
Qualifying on an insured rate with a 10% downpayment over a 25-year amortization does not apply on properties valued at $1 million or more:
Qualifying on an insured rate with a 20% downpayment over a 30-year amortization: