Canada Guaranty – Who They Are and What They Do

Canada Guaranty is a private mortgage insurer in Canada that provides mortgage insurance to homebuyers who have a down payment of less than 20% of the purchase price of the home. They offer a range of mortgage insurance products and services to help Canadians achieve their dream of homeownership. Mortgages with less than 20% down payment are called High Ratio Mortgages, and they must be insured against default.

History of Canada Guaranty

Canada Guaranty was founded in 2010 and is headquartered in Toronto, Ontario. The company was created as a joint venture between Ontario Teachers’ Pension Plan and National Mortgage Guaranty Holdings Inc. (a subsidiary of the U.S.-based private mortgage insurer, Genworth Financial).

In 2018, Ontario Teachers’ Pension Plan acquired full ownership of Canada Guaranty, making it a wholly-owned Canadian company. Since then, Canada Guaranty has continued to grow and expand its offerings, becoming one of the leading mortgage insurers in the country.

What Does Canada Guaranty Do?

Canada Guaranty provides mortgage insurance to homebuyers who have a down payment of less than 20% of the purchase price of the home. This insurance protects lenders in case the borrower defaults on their mortgage. Canada Guaranty offers mortgage insurance for high-ratio mortgages, which are those with a down payment of less than 20%.

In addition to mortgage insurance, Canada Guaranty also offers a range of products and services to help homebuyers and homeowners. This includes tools and resources to help borrowers understand the mortgage process and manage their finances, as well as financial literacy and homebuyer education programs.

Canada Guaranty’s mortgage insurance premiums vary depending on the down payment amount, the loan-to-value ratio, and the length of the mortgage. Premiums range from 1.75% to 4.00% of the mortgage amount, with lower premiums available for borrowers with higher down payments and lower loan-to-value ratios.

Canada Guaranty vs. Other Mortgage Insurers

Canada Guaranty is one of three mortgage insurers in Canada, alongside the Canada Mortgage and Housing Corporation (CMHC) and Genworth Canada. While CMHC is a federal agency, Canada Guaranty and Genworth Canada are private companies.

Compared to CMHC and Genworth Canada, Canada Guaranty is a newer player in the mortgage insurance market. However, they have quickly established themselves as a strong competitor, with a focus on personalized service and a commitment to innovation and growth.

Canada Guaranty is a private mortgage insurer in Canada that provides mortgage insurance to homebuyers who have a down payment of less than 20% of the purchase price of the home. They offer a range of mortgage insurance products and services, as well as tools and resources to help borrowers manage their finances and understand the mortgage process. While they are a newer player in the market, they have quickly established itself as a leading mortgage insurer in Canada.