Which insurance company has the largest share of the market for mortgage insurance?

Prepare for the Canada Mortgage Professionals Exam with our comprehensive quiz featuring flashcards and multiple choice questions. Each question is designed to enhance your understanding with detailed hints and explanations. Ace your exam effortlessly!

The Canada Mortgage and Housing Corporation (CMHC) is the largest provider of mortgage insurance in Canada, holding a significant market share. This organization was established by the Canadian government to support accessible housing and provide insurance for lenders against borrower default. Since mortgage insurance is often mandatory for homebuyers with down payments less than 20%, CMHC plays a crucial role in facilitating homeownership by allowing lenders to mitigate risk.

The other companies listed, while they may offer various financial products including insurance, do not specialize in mortgage insurance to the same extent as CMHC. Manulife Financial and Sun Life Financial primarily focus on life insurance, health insurance, and investment services, whereas Royal Bank of Canada, while a major financial institution, does not dominate the mortgage insurance market to the same degree. Thus, CMHC's established position and mandate make it the leader in this particular sector.

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