Originally Posted by
ercchry
Okay, first off... the insurance does NOT cover the borrower, they come after the person for everything, forever till they recover the loss. Second, for them to actually post up a loss the default rates would have to be massive as they are paid on not only every single high ratio loan, but also any insurable loan as well. With the lenders having to cover part of any loss on top of that as well their exposure is piss all. Cmhc will never post a loss, will never need a top up from tax dollars, and if they ever do we have way larger issues and you might as well be leveraged to the tits when that day comes as the gov will be seizing banks at that point and your money will be gone