Conventional versus High Ratio

Down Payment of 20% or more - Conventional Mortgage

Is a mortgage for less than 80% LTV (Loan to Value. These mortgages don't generally need to be insured, although some lenders provide their own insurance and require you to pay an insurance premium on top of the mortgage amount, in order to protect themselves. A conventional mortgage can be used for those that have 20% or more as a down payment.

Down Payment of less than 20% - High Ratio Mortgage

Is a mortgage that is for more than 80% LTV (Loan to Value) Mortgages for 80% and more are required to have mortgage insurance on the loan. The majority of the time the insurance is provided by CMHC (Canada Mortgage and Housing Corporation or GE (GE Mortgage Insurance Canada, now Genworth). You pay an insurance premium up to 7.3% on top of your mortgage amount and the bank or finance company has the assurance that if you default the mortgage will be covered by the insurance policy.