What is the maximum purchase price allowable for insured mortgages in Canada?

In Canada, the maximum purchase price allowable for insured mortgages is $1 Million. This limit is significant because it determines the eligibility for mortgage insurance from providers like the Canada Mortgage and Housing Corporation (CMHC), Genworth, or Canada Guaranty.

Mortgage insurance is intended to protect lenders in the event of borrower default, and in Canada, it becomes mandatory when the down payment is less than 20% of the property's purchase price. By capping the insured mortgage limit at $1 Million, the program aims to support homebuyers in the market while also mitigating risk for insurers and lenders.

Understanding this limit is crucial for mortgage professionals and aspiring homebuyers alike, as it influences buyers' purchasing power and shapes the housing market. Knowing this maximum amount helps in planning financial strategies for home purchases, as going beyond this price would necessitate a more substantial down payment or different financing options.