On bank's site it says:
- Conventional mortgage: means your downpayment is at least 20% of the purchase price.
- High-ratio mortgage: means your downpayment is less than 20% of the purchase price.
High ratio mortgages must be insured by a third party such as the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada and require you to pay an insurance premium.
So what is the difference between those two in terms of payments? I don't see any separation for rates between high and conventional on the rate listings page. Do those rates they list on the site assume by default that your downpayment is more than 20% or less?
How does making 20% downpayment affects your monthly payments? Lets say if monthly payments for 18% downpayment are $1000, would there be some dramatic changes between 19% and 20% as comparing to 18% and 19%? Does it affect amount of mortgage you can afford?