MGIC applied with the federal government this summer and is expected to launch sometime in 2008.
Mortgage default insurance is something that’s required of most borrowers with less than 20% down. That encompasses roughly 1/2 of all Canadian mortgagors. This stat has helped make Canada the 2nd largest, and one of the most profitable, mortgage insurance markets in the world.
As a result, insurers have been clamoring lately to hang up a shingle and grab their piece of the pie. The resulting benefits to borrowers are more choice in mortgages, lower insurance fees, and easier qualification standards (although some would term that a risk instead of a benefit).