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Low-Ratio Mortgage

A mortgage loan that is no more than 80% of the value of a home.

Low-ratio mortgages are sometimes referred to as “conventional mortgages.”

Unlike most high-ratio mortgages, low-ratio mortgages are not required by law to carry mortgage default insurance. However, lenders often insure them anyway to lower their risk, facilitate securitization or reduce their capital requirements.

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Last modified: March 26, 2012

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.