A Bigger Downpayment Doesn’t Always Mean a Lower Rate!

Katherine Martin • February 10, 2017

If you’ve been following the financial news in Canada lately (or if you read the blog here regularly), you will know that a lot is changing in the world of mortgage financing. Most recently, the Canadian Mortgage and Housing Corporation (CMHC) announced an increase in their insurance premiums that will come into effect on March 17th 2017. And although we are still in early February, the impacts of this change are already being felt.

One of these impacts; as odd as it may sound, is that coming up with a larger downpayment doesn’t necessarily mean you will be able to secure a mortgage with the lowest interest rate available on the market. In fact, in today’s market, borrowers with a 5% downpayment are actually being favoured to borrowers with a 20% downpayment and can access mortgage products with a little lower interest rate. But it’s all really a matter of optics, here is what is really going on!

High ratio mortgages (less than 20% downpayment) are required to have mortgage default insurance in place. This cost is incurred by the borrower and usually included into the cost of the mortgage. So, let’s say you have a 5% downpayment, with the latest CMHC premium increase, you would be paying a 4% insurance premium. That is a significant amount of money added to the mortgage. 

Conventional ratio mortgages (more than 20% downpayment) are not required to have mortgage default insurance in place, however a lot of lenders opt to insure these mortgages anyway. The cost to insure the mortgage is incurred by the lender as a cost of doing business. This is where the change has taken place, with the latest increase in premiums to insure mortgages, it has just gotten a lot more expensive for lenders to insure their mortgages against default. This is a cost that they can’t pass along to consumers as a fee like what happens with high ratio mortgages (that would look really bad), so they simply increase the mortgage rate to make up the difference. 

This leaves the market in a very interesting (and sometimes confusing) spot. It would seem that the less money you put down, the better rate you are able to secure. However that isn’t really the case, it’s just that the cost of the default insurance is being paid as a fee added to the mortgage, instead of being an additional cost to the lender that has been included in the sticker price of your mortgage.

Now, if we are being honest, rates are really good right now, we are at near all time historic Canadian lows. Comparatively, any rate today is a good rate! If you want to discuss your options, look at all the numbers, and figure out the best mortgage product for you, please don’t hesitate to contact me anytime! 

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


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By Katherine Martin • March 11, 2026
Your Guide to Real Estate Investment in Canada Real estate has long been one of the most popular ways Canadians build wealth. Whether you’re purchasing your first rental property or expanding an existing portfolio, understanding how real estate investment works in Canada—and how it’s financed—is key to making smart decisions. This guide walks through the fundamentals you need to know before getting started. Why Canadians Invest in Real Estate Real estate offers several potential benefits as an investment: Long-term appreciation of property value Rental income that can support cash flow Leverage , allowing you to invest using borrowed funds Tangible asset with intrinsic value Portfolio diversification beyond stocks and bonds When structured properly, real estate can support both income and long-term net worth growth. Types of Real Estate Investments Investors typically focus on one or more of the following: Long-term residential rentals Short-term or vacation rentals (subject to local regulations) Multi-unit residential properties Pre-construction or assignment purchases Value-add properties that require renovations Each type comes with different financing rules, risks, and return profiles. Down Payment Requirements for Investment Properties In Canada, investment properties generally require higher down payments than owner-occupied homes. Typical minimums include: 20% down payment for most rental properties Higher down payments may be required depending on: Number of units Property type Borrower profile Lender guidelines Down payment source, income stability, and credit history all play a role in approval. How Rental Income Is Used to Qualify Lenders don’t always count 100% of rental income. Depending on the lender and mortgage product, they may: Use a rental income offset , or Include a percentage of rental income toward qualification Understanding how income is treated can significantly impact borrowing power. Financing Options for Investors Investment financing can include: Conventional mortgages Insured or insurable options (in limited scenarios) Alternative or broker-only lenders Refinancing equity from existing properties Purchase plus improvements for value-add projects Access to multiple lenders is often crucial for investors as portfolios grow. Key Costs Investors Should Plan For Beyond the purchase price, investors should budget for: Property taxes Insurance Maintenance and repairs Vacancy periods Property management fees (if applicable) Legal and closing costs A realistic cash-flow analysis is essential before buying. Risk Considerations Like any investment, real estate carries risk. Key factors to consider include: Interest rate changes Market fluctuations Tenant turnover Regulatory changes Liquidity (real estate is not easily sold quickly) A strong financing structure can help manage many of these risks. The Role of a Mortgage Professional Investment mortgages are rarely “one-size-fits-all.” Lender policies vary widely, especially as you acquire more properties. Working with an independent mortgage professional allows you to: Compare multiple lender strategies Structure financing for long-term growth Preserve flexibility as your portfolio evolves Avoid costly mistakes early on Final Thoughts Real estate investment in Canada can be a powerful wealth-building tool when approached with a clear strategy and proper financing. Whether you’re exploring your first rental property or planning your next acquisition, understanding the numbers—and the lending landscape—matters. If you’d like to discuss investment property financing, run the numbers, or explore your options, feel free to connect. A well-planned mortgage strategy can make all the difference in long-term success.

Let’s Talk About Getting Top Dollar for Your Property

By Katherine Martin • March 4, 2026
When it comes to selling your home, most people think the first call should be to a real estate agent. But the smartest first step often isn’t with your agent—it’s with an independent mortgage professional. Why? Because your mortgage plays a bigger role in your bottom line than most people realize. Planning to Buy After You Sell If selling means you’ll also be purchasing another property, you’ll want to know exactly where you stand financially before listing. Mortgage rules change regularly, and qualifying once doesn’t guarantee you’ll qualify again. Getting a pre-approval in place ensures you know what you can afford and eliminates surprises later. On top of that, reviewing the terms of your existing mortgage could uncover options you may not have considered. For example, porting your mortgage instead of arranging a brand-new one could save you thousands. Selling Without Buying Even if you aren’t planning to buy right away, there’s still an important step: understanding the cost of breaking your mortgage. Unless your mortgage is open, penalties apply—and they can be significant. By reviewing the numbers with a mortgage professional, you might find that simply adjusting your timeline could reduce or even avoid costly fees. Navigating Life Changes In situations like a marital breakdown, it can feel like selling the family home is the only path forward. But that’s not always the case. With the right guidance and a legal separation agreement, one spouse may be able to buy out the other, keeping the home and providing stability for everyone involved. The Bottom Line Selling your property is more than just putting a sign on the lawn—it’s about creating a financial plan that protects your equity and positions you for the best possible outcome. Before you take the leap, let’s sit down and review your options. 📞 If you’re ready to talk strategy and make sure you get top dollar for your property, I’d be happy to connect anytime.
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